Trade-Ideas LLC identified Turquoise Hill Resources ( TRQ) as a strong 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 $6.2 million.
  • TRQ has traded 242,854 shares today.
  • TRQ is trading at 2.73 times the normal volume for the stock at this time of day.
  • TRQ is trading at a new high 4.27% 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 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 18. 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 2.5 million shares per day over the past 30 days. Turquoise Hill has a market cap of $4.2 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.24 and a short float of 2.7% with 1.10 days to cover. Shares are down 16.9% year-to-date as of the close of trading on Thursday.

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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, weak operating cash flow, generally disappointing historical performance in the stock itself and disappointing return on equity.

Highlights from the ratings report include:
  • TURQUOISE HILL RESOURCES LTD 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. 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.
  • Net operating cash flow has decreased to $165.26 million or 33.23% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, TURQUOISE HILL RESOURCES LTD has marginally lower results.
  • 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 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.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 30.52%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 60.00% 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.
  • Despite the weak revenue results, TRQ has significantly outperformed against the industry average of 50.5%. Since the same quarter one year prior, revenues slightly dropped by 7.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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