Trade-Ideas LLC identified Resolute Energy ( REN) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Resolute Energy as such a stock due to the following factors:

  • REN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.4 million.
  • REN has traded 143,972 shares today.
  • REN is up 3.5% today.
  • REN was down 6% yesterday.

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More details on REN:

Resolute Energy Corporation, an independent oil and gas company, engages in the acquisition, exploitation, exploration for, and development of oil and gas properties in the United States. Currently there are 2 analysts that rate Resolute Energy a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Resolute Energy has been 561,200 shares per day over the past 30 days. Resolute Energy has a market cap of $117.4 million and is part of the basic materials sector and energy industry. Shares are up 64.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

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

Highlights from the ratings report include:
  • REN's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 32.19%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.
  • Net operating cash flow has decreased to $16.54 million or 46.01% when compared to the same quarter last year. Despite a decrease in cash flow of 46.01%, RESOLUTE ENERGY CORP is in line with the industry average cash flow growth rate of -49.80%.
  • Along with the very weak revenue results, REN underperformed when compared to the industry average of 24.0%. Since the same quarter one year prior, revenues plummeted by 53.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • RESOLUTE ENERGY CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, RESOLUTE ENERGY CORP reported poor results of -$49.65 versus -$1.50 in the prior year. This year, the market expects an improvement in earnings (-$0.02 versus -$49.65).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 59.0% when compared to the same quarter one year prior, rising from -$208.22 million to -$85.31 million.

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