Trade-Ideas LLC identified

Sandstorm Gold

(

SAND

) as a weak 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 $6.7 million.
  • SAND has traded 1.1 million shares today.
  • SAND is trading at 7.51 times the normal volume for the stock at this time of day.
  • SAND is trading at a new low 9.13% 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 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. Currently there are 2 analysts that rate Sandstorm Gold a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Sandstorm Gold has been 1.2 million shares per day over the past 30 days. Sandstorm has a market cap of $667.9 million and is part of the basic materials sector and metals & mining industry. Shares are up 83.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Sandstorm Gold as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:

  • Powered by its strong earnings growth of 900.00% and other important driving factors, this stock has surged by 48.17% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 1495.0% when compared to the same quarter one year prior, rising from $0.83 million to $13.16 million.
  • The gross profit margin for SANDSTORM GOLD LTD is rather high; currently it is at 67.07%. Regardless of SAND's high profit margin, it has managed to decrease from the same period last year.
  • SANDSTORM GOLD LTD reported significant earnings per share improvement in the most recent quarter compared to 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 swung to a loss, reporting -$0.35 versus $0.10 in the prior year.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness 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.

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