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

  • TPLM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.8 million.
  • TPLM has traded 99,334 shares today.
  • TPLM is trading at 2.22 times the normal volume for the stock at this time of day.
  • TPLM is trading at a new low 5.23% 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 TPLM:

Triangle Petroleum Corporation, an independent energy company, explores for, develops, and produces oil and natural gas resources primarily in the Bakken Shale and Three Forks formations in the Williston Basin of North Dakota and Montana. Currently there is 1 analyst that rates Triangle Petroleum a buy, 1 analyst rates it a sell, and 8 rate it a hold.

The average volume for Triangle Petroleum has been 1.4 million shares per day over the past 30 days. Triangle has a market cap of $122.3 million and is part of the basic materials sector and energy industry. The stock has a beta of 0.17 and a short float of 23.8% with 6.57 days to cover. Shares are down 68% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Triangle Petroleum as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 1428.7% when compared to the same quarter one year ago, falling from $14.55 million to -$193.35 million.
  • The debt-to-equity ratio is very high at 4.71 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, TPLM maintains a poor quick ratio of 0.85, which illustrates the inability to avoid short-term cash problems.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, TRIANGLE PETROLEUM CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 84.15%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1806.66% compared to the year-earlier 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.
  • TRIANGLE PETROLEUM CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, TRIANGLE PETROLEUM CORP increased its bottom line by earning $0.98 versus $0.87 in the prior year. For the next year, the market is expecting a contraction of 141.8% in earnings (-$0.41 versus $0.98).

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