Cheniere Energy Partners (CQP) Stock: Weak On High Volume Today

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

  • CQP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.9 million.
  • CQP has traded 67,277 shares today.
  • CQP is trading at 2.24 times the normal volume for the stock at this time of day.
  • CQP is trading at a new low 5.17% 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 CQP:

Cheniere Energy Partners, L.P., through its subsidiary, Sabine Pass LNG, L.P., owns and operates the Sabine Pass liquefied natural gas (LNG) terminal located on the Sabine Pass deep water shipping channel. The stock currently has a dividend yield of 6.4%. Currently there are 6 analysts that rate Cheniere Energy Partners a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Cheniere Energy Partners has been 276,100 shares per day over the past 30 days. Cheniere Energy has a market cap of $1.5 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.95 and a short float of 1.9% with 1.66 days to cover. Shares are down 21.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Cheniere Energy Partners as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and generally higher debt management risk.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 44.2% when compared to the same quarter one year prior, rising from -$43.24 million to -$24.13 million.
  • Net operating cash flow has significantly increased by 88.06% to -$3.53 million when compared to the same quarter last year. In addition, CHENIERE ENERGY PARTNERS LP has also vastly surpassed the industry average cash flow growth rate of -26.85%.
  • CHENIERE ENERGY PARTNERS LP has improved earnings per share by 46.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CHENIERE ENERGY PARTNERS LP reported poor results of -$1.22 versus -$0.89 in the prior year. This year, the market expects an improvement in earnings (-$0.37 versus -$1.22).
  • CQP has underperformed the S&P 500 Index, declining 10.71% 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.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CHENIERE ENERGY PARTNERS LP's return on equity significantly trails that of both the industry average and the S&P 500.

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