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Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Randgold Resources as such a stock due to the following factors:
- GOLD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $44.3 million.
- GOLD has traded 239,498 shares today.
- GOLD is trading at 3.67 times the normal volume for the stock at this time of day.
- GOLD is trading at a new low 4.08% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on GOLD:
Randgold Resources Limited explores and develops gold deposits in Sub-Saharan Africa. The stock currently has a dividend yield of 0.7%. GOLD has a PE ratio of 20.9. Currently there are 6 analysts that rate Randgold Resources a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Randgold Resources has been 723,900 shares per day over the past 30 days. Randgold has a market cap of $6.0 billion and is part of the basic materials sector and metals & mining industry. Shares are up 0.7% year-to-date as of the close of trading on Wednesday.
rates Randgold Resources as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and feeble growth in the company's earnings per share.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 0.7%. Since the same quarter one year prior, revenues rose by 27.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- GOLD's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.10, which illustrates the ability to avoid short-term cash 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 Metals & Mining industry and the overall market on the basis of return on equity, RANDGOLD RESOURCES LTD has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- GOLD has underperformed the S&P 500 Index, declining 8.87% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- You can view the full Randgold Resources Ratings Report.