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Trade-Ideas LLC identified

Lucas Energy



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

  • LEI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.1 million.
  • LEI has traded 171,891 shares today.
  • LEI is trading at 26.08 times the normal volume for the stock at this time of day.
  • LEI is trading at a new low 13.02% 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 LEI:

TheStreet Recommends

Lucas Energy, Inc. operates as an independent oil and gas company in the United States.

The average volume for Lucas Energy has been 399,700 shares per day over the past 30 days. Lucas Energy has a market cap of $10.1 million and is part of the basic materials sector and energy industry. The stock has a beta of -0.14 and a short float of 13.2% with 0.06 days to cover. Shares are down 27.4% year-to-date as of the close of trading on Wednesday.

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TheStreet Quant Ratings

rates Lucas Energy as a


. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, LUCAS ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for LUCAS ENERGY INC is currently extremely low, coming in at 1.38%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -328.62% is significantly below that of the industry average.
  • Net operating cash flow has decreased to -$0.45 million or 46.71% 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.
  • LEI'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 46.77%, 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. 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.
  • LEI, with its very weak revenue results, has greatly underperformed against the industry average of 36.8%. Since the same quarter one year prior, revenues plummeted by 70.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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