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Trade-Ideas LLC identified

Sandstorm Gold

(

SAND

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

  • SAND has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.6 million.
  • SAND has traded 299,169 shares today.
  • SAND is trading at 2.15 times the normal volume for the stock at this time of day.
  • SAND is trading at a new high 3.05% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 SAND:

Sandstorm Gold Ltd., a resource-based company, focuses on acquiring gold and other precious metal purchase agreements and royalties from companies that have advanced stage development projects or operating mines. SAND has a PE ratio of 3. Currently there is 1 analyst that rates Sandstorm Gold a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Sandstorm Gold has been 605,900 shares per day over the past 30 days. Sandstorm has a market cap of $349.9 million and is part of the basic materials sector and metals & mining industry. Shares are down 13.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Sandstorm Gold as a

sell

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

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 Metals & Mining industry. The net income has significantly decreased by 542.6% when compared to the same quarter one year ago, falling from $3.04 million to -$13.45 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 48.47%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 466.66% 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.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, SANDSTORM GOLD LTD underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • The gross profit margin for SANDSTORM GOLD LTD is rather high; currently it is at 53.08%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, SAND's net profit margin of -87.18% significantly underperformed when compared to the industry average.
  • SANDSTORM GOLD LTD 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 not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, SANDSTORM GOLD LTD turned its bottom line around by earning $0.10 versus -$0.79 in the prior year.

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