Trade-Ideas LLC identified

SandRidge Energy

(

SD

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified SandRidge Energy as such a stock due to the following factors:

  • SD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.2 million.
  • SD has traded 1.9 million shares today.
  • SD is trading at 4.94 times the normal volume for the stock at this time of day.
  • SD is trading at a new low 4.01% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in SD with the Ticky from Trade-Ideas. See the FREE profile for SD NOW at Trade-Ideas

More details on SD:

SandRidge Energy, Inc., an oil and natural gas company, explores for and produces oil and natural gas properties primarily in the Mid-Continent region of the United States. Currently there are no analysts that rate SandRidge Energy a buy, 4 analysts rate it a sell, and 8 rate it a hold.

The average volume for SandRidge Energy has been 14.6 million shares per day over the past 30 days. SandRidge Energy has a market cap of $160.6 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.87 and a short float of 21% with 3.70 days to cover. Shares are down 83.4% year-to-date as of the close of trading on Thursday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates SandRidge Energy as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 4060.3% when compared to the same quarter one year ago, falling from -$32.89 million to -$1,368.48 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 91.23%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 2680.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • SANDRIDGE ENERGY INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, SANDRIDGE ENERGY INC turned its bottom line around by earning $0.34 versus -$1.28 in the prior year. For the next year, the market is expecting a contraction of 179.4% in earnings (-$0.27 versus $0.34).
  • SD, with its decline in revenue, slightly underperformed the industry average of 34.6%. Since the same quarter one year prior, revenues fell by 38.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Net operating cash flow has significantly increased by 63.10% to $228.90 million when compared to the same quarter last year. In addition, SANDRIDGE ENERGY INC has also vastly surpassed the industry average cash flow growth rate of -19.88%.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.