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

  • VNR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.7 million.
  • VNR has traded 501,894 shares today.
  • VNR is trading at 3.78 times the normal volume for the stock at this time of day.
  • VNR is trading at a new low 3.03% 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 VNR:

Vanguard Natural Resources, LLC, through its subsidiaries, acquires and develops oil and natural gas properties in the United States. The stock currently has a dividend yield of 24.7%. Currently there is 1 analyst that rates Vanguard Natural Resources a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Vanguard Natural Resources has been 1.5 million shares per day over the past 30 days. Vanguard Natural has a market cap of $259.3 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.01 and a short float of 3.6% with 1.76 days to cover. Shares are down 33.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

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

Highlights from the ratings report include:
  • Net operating cash flow has significantly decreased to $50.16 million or 55.86% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, VANGUARD NATURAL RESOURCES has marginally lower results.
  • VNR'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 87.03%, 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.
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has decreased by 22.3% when compared to the same quarter one year ago, dropping from -$118.83 million to -$145.28 million.
  • VNR, with its decline in revenue, slightly underperformed the industry average of 23.9%. Since the same quarter one year prior, revenues fell by 28.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • VANGUARD NATURAL RESOURCES has improved earnings per share by 22.1% 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, VANGUARD NATURAL RESOURCES swung to a loss, reporting -$20.16 versus $0.54 in the prior year. This year, the market expects an improvement in earnings ($0.67 versus -$20.16).

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