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Trade-Ideas LLC identified
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Resolute Energy as such a stock due to the following factors:
- REN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.5 million.
- REN has traded 343,595 shares today.
- REN is trading at 3.06 times the normal volume for the stock at this time of day.
- REN is trading at a new high 10.58% 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 REN:
Resolute Energy Corporation, an independent oil and gas company, acquires, explores for, develops, and produces oil, gas, and hydrocarbon liquids. Currently there are 2 analysts that rate Resolute Energy a buy, no analysts rate it a sell, and 8 rate it a hold.
The average volume for Resolute Energy has been 1.6 million shares per day over the past 30 days. Resolute Energy has a market cap of $89.5 million and is part of the basic materials sector and energy industry. The stock has a beta of 2.07 and a short float of 15.4% with 3.68 days to cover. Shares are down 88.5% year-to-date as of the close of trading on Monday.
rates Resolute Energy as a
. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- The debt-to-equity ratio of 1.37 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with this, the company manages to maintain a quick ratio of 0.50, which clearly demonstrates the inability to cover short-term cash needs.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, RESOLUTE ENERGY CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $37.22 million or 19.76% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- REN's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 87.70%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 6.7%. Since the same quarter one year prior, revenues slightly dropped by 5.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full Resolute Energy Ratings Report.