Sandstorm Gold (SAND) Is Strong On High Volume Today

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 $5.5 million.
  • SAND has traded 194,425 shares today.
  • SAND is trading at 3.34 times the normal volume for the stock at this time of day.
  • SAND is trading at a new high 7.06% 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 1.1 million shares per day over the past 30 days. Sandstorm has a market cap of $287.9 million and is part of the basic materials sector and metals & mining industry. Shares are down 40.3% year-to-date as of the close of trading on Thursday.

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 generally disappointing historical performance in the stock itself and disappointing return on equity.

Highlights from the ratings report include:
  • SAND'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 46.02%, 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.
  • 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 on the basis of return on equity, SANDSTORM GOLD LTD has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • 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.
  • SAND, with its decline in revenue, slightly underperformed the industry average of 0.2%. 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.
  • The gross profit margin for SANDSTORM GOLD LTD is rather high; currently it is at 66.87%. Regardless of SAND's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SAND's net profit margin of 23.10% compares favorably to 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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