Trade-Ideas LLC identified Halcon Resources ( HK) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Halcon Resources as such a stock due to the following factors:
- HK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.7 million.
- HK has traded 568,067 shares today.
- HK is trading at 4.31 times the normal volume for the stock at this time of day.
- HK is trading at a new high 10.16% 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. EXCLUSIVE OFFER: Get the inside scoop on opportunities in HK with the Ticky from Trade-Ideas. See the FREE profile for HK NOW at Trade-Ideas More details on HK: Halcon Resources Corporation, an independent energy company, engages in the acquisition, production, exploration, and development of onshore oil and natural gas properties in the United States. Currently there are 2 analysts that rate Halcon Resources a buy, 3 analysts rate it a sell, and 5 rate it a hold. The average volume for Halcon Resources has been 2.0 million shares per day over the past 30 days. Halcon has a market cap of $149.7 million and is part of the basic materials sector and energy industry. The stock has a beta of 4.46 and a short float of 27.8% with 7.43 days to cover. Shares are up 1.6% year-to-date as of the close of trading on Thursday. EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Halcon Resources as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally high debt management risk, 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 252.0% when compared to the same quarter one year ago, falling from $258.76 million to -$393.44 million.
- 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, HALCON RESOURCES CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- The debt-to-equity ratio is very high at 54.83 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, HK has managed to keep a strong quick ratio of 1.85, which demonstrates the ability to cover short-term cash needs.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 87.04%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 248.33% 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.
- HALCON RESOURCES 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. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, HALCON RESOURCES CORP swung to a loss, reporting -$19.96 versus $2.35 in the prior year. This year, the market expects an improvement in earnings (-$0.08 versus -$19.96).
- You can view the full Halcon Resources Ratings Report.
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