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

  • TPLM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.9 million.
  • TPLM has traded 4.6 million shares today.
  • TPLM is trading at 19.11 times the normal volume for the stock at this time of day.
  • TPLM is trading at a new low 34.15% 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 TPLM:

Triangle Petroleum Corporation, an independent energy company, engages in the exploration, development, and production of oil and natural gas properties in the United States. It operates in two segments, Exploration and Production, and Oilfield Services. Currently there are no analysts that rate Triangle Petroleum a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Triangle Petroleum has been 1.8 million shares per day over the past 30 days. Triangle has a market cap of $24.4 million and is part of the basic materials sector and energy industry. The stock has a beta of 2.03 and a short float of 16.6% with 1.11 days to cover. Shares are down 20.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Triangle Petroleum as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow, 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 515.9% when compared to the same quarter one year ago, falling from $38.91 million to -$161.80 million.
  • Net operating cash flow has significantly decreased to $22.56 million or 77.07% 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.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 96.45%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 609.52% 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.
  • TRIANGLE PETROLEUM 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 two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, TRIANGLE PETROLEUM CORP swung to a loss, reporting -$10.89 versus $0.98 in the prior year. This year, the market expects an improvement in earnings (-$1.28 versus -$10.89).
  • TPLM, with its very weak revenue results, has greatly underperformed against the industry average of 24.5%. Since the same quarter one year prior, revenues plummeted by 58.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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