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

  • LEI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.8 million.
  • LEI has traded 222,065 shares today.
  • LEI is trading at 2.68 times the normal volume for the stock at this time of day.
  • LEI is trading at a new high 3.00% 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 LEI:

Lucas Energy, Inc. operates as an independent oil and gas company in the United States.

The average volume for Lucas Energy has been 438,800 shares per day over the past 30 days. Lucas Energy has a market cap of $5.7 million and is part of the basic materials sector and energy industry. The stock has a beta of -0.14 and a short float of 13.2% with 0.04 days to cover. Shares are down 36.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Lucas Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:
  • 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 Oil, Gas & Consumable Fuels industry and the overall market, LUCAS ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for LUCAS ENERGY INC is currently extremely low, coming in at 1.38%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -328.62% is significantly below that of the industry average.
  • Net operating cash flow has decreased to -$0.45 million or 46.71% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • LEI, with its very weak revenue results, has greatly underperformed against the industry average of 36.9%. Since the same quarter one year prior, revenues plummeted by 70.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • LEI's debt-to-equity ratio is very low at 0.30 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.11 is very weak and demonstrates a lack of ability to pay short-term obligations.

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