Trade-Ideas LLC identified Resolute Energy ( REN) as a strong on high relative volume 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 $6.1 million.
  • REN has traded 1.1 million shares today.
  • REN is trading at 32.28 times the normal volume for the stock at this time of day.
  • REN is trading at a new high 28.02% 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 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 706,300 shares per day over the past 30 days. Resolute Energy has a market cap of $102.6 million and is part of the basic materials sector and energy industry. The stock has a beta of 4.31 and a short float of 10.2% with 2.03 days to cover. Shares are up 57.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Resolute Energy as a sell. Among the areas we feel are negative, one of the most important has been weak operating cash flow.

Highlights from the ratings report include:
  • 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 -49.98%.
  • Along with the very weak revenue results, REN underperformed when compared to the industry average of 24.1%. 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 ($0.49 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.
  • This stock has increased by 120.52% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in REN do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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