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Trade-Ideas LLC identified
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Miller Energy Resources as such a stock due to the following factors:
- MILL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.6 million.
- MILL has traded 1.0 million shares today.
- MILL is up 3.1% today.
- MILL was down 5.1% yesterday.
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More details on MILL:
Miller Energy Resources, Inc., an independent exploration and production company, engages in the exploration, development, and operation of oil and gas wells in the Appalachian region of east Tennessee and in south-central Alaska. Currently there is 1 analyst that rates Miller Energy Resources a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Miller Energy Resources has been 838,200 shares per day over the past 30 days. Miller Energy has a market cap of $322.8 million and is part of the basic materials sector and energy industry. The stock has a beta of 2.16 and a short float of 26.9% with 5.43 days to cover. Shares are up 83.1% year-to-date as of the close of trading on Tuesday.
rates Miller Energy Resources as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share and disappointing return on equity.
Highlights from the ratings report include:
- MILL's very impressive revenue growth greatly exceeded the industry average of 5.4%. Since the same quarter one year prior, revenues leaped by 73.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, MILL's share price has jumped by 111.38%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- MILL's debt-to-equity ratio is very low at 0.20 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.76 is somewhat weak and could be cause for future problems.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, MILLER ENERGY RESOURCES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- MILLER ENERGY RESOURCES INC's earnings per share declined by 26.7% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, MILLER ENERGY RESOURCES INC reported poor results of -$0.60 versus -$0.47 in the prior year. For the next year, the market is expecting a contraction of 13.3% in earnings (-$0.68 versus -$0.60).
- You can view the full Miller Energy Resources Ratings Report.