AuRico Gold (AUQ) Strong On High Relative 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.

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 $3.7 million.
  • AUQ has traded 222,672 shares today.
  • AUQ is trading at 2.57 times the normal volume for the stock at this time of day.
  • AUQ is trading at a new high 3.28% 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 1.3%. Currently there are 4 analysts that rate AuRico Gold a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for AuRico Gold has been 2.3 million shares per day over the past 30 days. AuRico has a market cap of $867.6 million and is part of the basic materials sector and metals & mining industry. Shares are down 7% year-to-date as of the close of trading on Friday.

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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 decreased to $14.03 million or 42.70% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, AUQ has underperformed the S&P 500 Index, declining 24.51% 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 change in net income from the same quarter one year ago has significantly exceeded that of the Metals & Mining industry average, but is less than that of the S&P 500. The net income has decreased by 22.0% when compared to the same quarter one year ago, dropping from -$28.89 million to -$35.26 million.
  • 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, AURICO GOLD INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • AURICO GOLD INC's earnings per share declined by 16.7% 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 continued to lose money by earning -$0.68 versus -$0.77 in the prior year.

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