Strong On High Relative Volume: AuRico Gold (AUQ)

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

  • AUQ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.3 million.
  • AUQ has traded 216,170 shares today.
  • AUQ is trading at 2.64 times the normal volume for the stock at this time of day.
  • AUQ is trading at a new high 5.08% 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 AUQ:

AuRico Gold Inc. operates as a gold producer with mines and projects in North America. The stock currently has a dividend yield of 0.5%. Currently there are 5 analysts that rate AuRico Gold a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for AuRico Gold has been 1.6 million shares per day over the past 30 days. AuRico has a market cap of $795.2 million and is part of the basic materials sector and metals & mining industry. Shares are down 19.4% year-to-date as of the close of trading on Wednesday.

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 AuRico Gold as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • Net operating cash flow has significantly decreased to $4.65 million or 66.49% 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.
  • AUQ has underperformed the S&P 500 Index, declining 21.60% 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.
  • AURICO GOLD INC 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, AURICO GOLD INC reported poor results of -$0.77 versus -$0.44 in the prior year.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, AURICO GOLD INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • 37.37% is the gross profit margin for AURICO GOLD INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -21.50% is in-line with the industry average.

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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