Trade-Ideas LLC identified

Cloud Peak Energy

(

CLD

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

  • CLD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.9 million.
  • CLD has traded 874,476 shares today.
  • CLD is trading at 11.34 times the normal volume for the stock at this time of day.
  • CLD is trading at a new high 21.03% 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 CLD:

TST Recommends

Cloud Peak Energy Inc., through its subsidiaries, produces coal in the Powder River Basin (PRB) and the United States. The company operates through Owned and Operated Mines, Logistics and Related Activities, and Corporate and Other segments. CLD has a PE ratio of 4. Currently there are 3 analysts that rate Cloud Peak Energy a buy, 1 analyst rates it a sell, and 7 rate it a hold.

The average volume for Cloud Peak Energy has been 2.0 million shares per day over the past 30 days. Cloud Peak Energy has a market cap of $173.9 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.74 and a short float of 23.6% with 9.59 days to cover. Shares are down 70.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cloud Peak Energy as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins, weak operating cash flow, 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 2362.6% when compared to the same quarter one year ago, falling from -$2.15 million to -$52.90 million.
  • The gross profit margin for CLOUD PEAK ENERGY INC is currently extremely low, coming in at 8.89%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -21.66% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$17.05 million or 175.55% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 71.39%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 2075.00% compared to the year-earlier 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.
  • CLOUD PEAK 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, CLOUD PEAK ENERGY INC increased its bottom line by earning $1.28 versus $0.85 in the prior year. For the next year, the market is expecting a contraction of 146.1% in earnings (-$0.59 versus $1.28).

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