Turquoise Hill Resources (TRQ) Stock: Weak On High Volume Today

Trade-Ideas LLC identified Turquoise Hill Resources ( TRQ) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Turquoise Hill Resources as such a stock due to the following factors:

  • TRQ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.9 million.
  • TRQ has traded 591,458 shares today.
  • TRQ is trading at 3.07 times the normal volume for the stock at this time of day.
  • TRQ is trading at a new low 4.17% 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 TRQ:

Turquoise Hill Resources Ltd., together with its subsidiaries, operates as a mining company. Its principal material mineral resource property is the Oyu Tolgoi copper-gold mine located in the southern Mongolia. The company was formerly known as Ivanhoe Mines Ltd. TRQ has a PE ratio of 25. Currently there are no analysts that rate Turquoise Hill Resources a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Turquoise Hill Resources has been 3.2 million shares per day over the past 30 days. Turquoise Hill has a market cap of $6.0 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of -0.34 and a short float of 2.7% with 3.84 days to cover. Shares are down 7.1% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Turquoise Hill Resources as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • TURQUOISE HILL RESOURCES LTD reported flat earnings per share in the most recent quarter. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, TURQUOISE HILL RESOURCES LTD reported lower earnings of $0.10 versus $0.18 in the prior year.
  • TRQ has underperformed the S&P 500 Index, declining 23.61% 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.
  • Despite the weak revenue results, TRQ has significantly outperformed against the industry average of 45.0%. Since the same quarter one year prior, revenues slightly dropped by 2.2%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • 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, TURQUOISE HILL RESOURCES LTD has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • The gross profit margin for TURQUOISE HILL RESOURCES LTD is rather high; currently it is at 54.59%. It has increased significantly from the same period last year.

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