Trade-Ideas LLC identified BP Prudhoe Bay Royalty ( BPT) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified BP Prudhoe Bay Royalty as such a stock due to the following factors:

  • BPT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.6 million.
  • BPT has traded 73,471 shares today.
  • BPT is trading at 5.12 times the normal volume for the stock at this time of day.
  • BPT is trading at a new high 3.25% 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 BPT:

BP Prudhoe Bay Royalty Trust operates as a grantor trust in the United States. The company holds overriding royalty interest comprising a non-operational interest in minerals in the Prudhoe Bay oil field located on the North Slope of Alaska. The stock currently has a dividend yield of 12%. BPT has a PE ratio of 7.

The average volume for BP Prudhoe Bay Royalty has been 280,200 shares per day over the past 30 days. BP Prudhoe Bay Royalty has a market cap of $368.5 million and is part of the basic materials sector and energy industry. Shares are down 32.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates BP Prudhoe Bay Royalty as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • BP PRUDHOE BAY ROYALTY TRUST 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. During the past fiscal year, BP PRUDHOE BAY ROYALTY TRUST reported lower earnings of $5.86 versus $10.60 in the prior year.
  • The change in net income from the same quarter one year ago has exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has significantly decreased by 77.6% when compared to the same quarter one year ago, falling from $57.53 million to $12.88 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 71.11%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 77.69% 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.
  • 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, BP PRUDHOE BAY ROYALTY TRUST's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • BPT, with its very weak revenue results, has greatly underperformed against the industry average of 23.9%. Since the same quarter one year prior, revenues plummeted by 77.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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