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

  • GTE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.4 million.
  • GTE has traded 191,239 shares today.
  • GTE is trading at 2.81 times the normal volume for the stock at this time of day.
  • GTE is trading at a new high 7.17% 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 GTE:

Gran Tierra Energy Inc., an independent energy company, engages in the acquisition, exploration, development, and production of oil and gas properties in Colombia, Peru, and Brazil. GTE has a PE ratio of 2. Currently there are 2 analysts that rate Gran Tierra Energy a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Gran Tierra Energy has been 1.3 million shares per day over the past 30 days. Gran Tierra Energy has a market cap of $683.0 million and is part of the basic materials sector and energy industry. The stock has a beta of 0.78 and a short float of 0.6% with 1.03 days to cover. Shares are up 6.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Gran Tierra Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • 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, GRAN TIERRA ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to $3.76 million or 94.53% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • GTE has underperformed the S&P 500 Index, declining 9.53% 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.
  • GRAN TIERRA ENERGY INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, GRAN TIERRA ENERGY INC reported poor results of -$0.94 versus -$0.51 in the prior year.
  • GTE, with its decline in revenue, underperformed when compared the industry average of 34.6%. Since the same quarter one year prior, revenues fell by 44.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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