Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Cheniere Energy as such a stock due to the following factors:
- LNG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $126.4 million.
- LNG has traded 240,647 shares today.
- LNG is trading at 2.10 times the normal volume for the stock at this time of day.
- LNG is trading at a new low 3.03% 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 LNG:
Cheniere Energy, Inc., an energy company, engages in the liquefied natural gas (LNG) related business. It operates through two segments, LNG Terminal Business, and LNG and Natural Gas Marketing Business. Currently there are 5 analysts that rate Cheniere Energy a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Cheniere Energy has been 3.6 million shares per day over the past 30 days. Cheniere Energy has a market cap of $7.5 billion and is part of the basic materials sector and energy industry. The stock has a beta of 2.03 and a short float of 12.2% with 5.55 days to cover. Shares are down 21.1% year-to-date as of the close of trading on Monday.
rates Cheniere Energy 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 and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- CHENIERE 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, CHENIERE ENERGY INC reported poor results of -$2.44 versus -$2.32 in the prior year. For the next year, the market is expecting a contraction of 37.3% in earnings (-$3.35 versus -$2.44).
- 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 232.4% when compared to the same quarter one year ago, falling from -$89.58 million to -$297.81 million.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 60.60%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 227.50% 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.
- Despite the weak revenue results, LNG has significantly outperformed against the industry average of 36.5%. Since the same quarter one year prior, revenues slightly dropped by 1.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for CHENIERE ENERGY INC is currently very high, coming in at 108.74%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -450.82% is in-line with the industry average.
- You can view the full Cheniere Energy Ratings Report.