Strong On High Volume: Sandstorm Gold (SAND)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Sandstorm Gold ( SAND) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Sandstorm Gold as such a stock due to the following factors:

  • SAND has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.7 million.
  • SAND has traded 151,803 shares today.
  • SAND is trading at 2.13 times the normal volume for the stock at this time of day.
  • SAND is trading at a new high 3.07% 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 SAND:

Sandstorm Gold Ltd., a gold streaming company, focuses on acquiring gold and other precious metal purchase agreements from companies that have advanced stage development projects or operating mines primarily in Canada, Brazil, and Mexico. Currently there is 1 analyst that rates Sandstorm Gold a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Sandstorm Gold has been 956,700 shares per day over the past 30 days. Sandstorm has a market cap of $599.2 million and is part of the basic materials sector and metals & mining industry. Shares are up 14.3% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Sandstorm Gold as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity 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 Metals & Mining industry and the overall market, SANDSTORM GOLD LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • SAND has underperformed the S&P 500 Index, declining 18.44% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Metals & Mining industry average, but is greater than that of the S&P 500. The net income increased by 120.3% when compared to the same quarter one year prior, rising from -$14.98 million to $3.04 million.
  • SAND, with its decline in revenue, slightly underperformed the industry average of 0.6%. Since the same quarter one year prior, revenues slightly dropped by 1.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • SANDSTORM GOLD LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, SANDSTORM GOLD LTD swung to a loss, reporting -$0.82 versus $0.23 in the prior year.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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