Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Vanguard Natural Resources as such a stock due to the following factors:
- VNR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.3 million.
- VNR has traded 352,478 shares today.
- VNR is trading at 2.09 times the normal volume for the stock at this time of day.
- VNR is trading at a new low 3.40% 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 VNR:
Vanguard Natural Resources, LLC, through its subsidiaries, acquires and develops oil and natural gas properties in the United States. The stock currently has a dividend yield of 13.8%. Currently there are 6 analysts that rate Vanguard Natural Resources a buy, 1 analyst rates it a sell, and 5 rate it a hold.
The average volume for Vanguard Natural Resources has been 1.5 million shares per day over the past 30 days. Vanguard Natural has a market cap of $340.5 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.21 and a short float of 6.1% with 1.73 days to cover. Shares are down 78.8% year-to-date as of the close of trading on Wednesday.
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rates Vanguard Natural Resources as a
. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk, disappointing return on equity and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- VANGUARD NATURAL RESOURCES 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. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, VANGUARD NATURAL RESOURCES reported lower earnings of $0.54 versus $0.75 in the prior year. For the next year, the market is expecting a contraction of 37.0% in earnings ($0.34 versus $0.54).
- 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 505.1% when compared to the same quarter one year ago, falling from $114.10 million to -$462.28 million.
- The debt-to-equity ratio is very high at 22.82 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, VNR has a quick ratio of 0.52, this demonstrates the lack of ability of the company to cover short-term liquidity 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, VANGUARD NATURAL RESOURCES's return on equity significantly trails that of both the industry average and the S&P 500.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 83.02%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 514.61% 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.
- You can view the full Vanguard Natural Resources Ratings Report.