Cloud Peak Energy (CLD) Weak On High Volume
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Cloud Peak Energy as such a stock due to the following factors:
- CLD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $19.5 million.
- CLD has traded 239,831 shares today.
- CLD is trading at 3.29 times the normal volume for the stock at this time of day.
- CLD is trading at a new low 4.34% 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 CLD:
Cloud Peak Energy Inc., through its subsidiaries, produces coal in the Powder River Basin (PRB) and the United States. The company operates through Owned and Operated Mines, Logistics and Related Activities, and Corporate and Other segments. CLD has a PE ratio of 6.3. Currently there are 7 analysts that rate Cloud Peak Energy a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Cloud Peak Energy has been 1.7 million shares per day over the past 30 days. Cloud Peak Energy has a market cap of $494.9 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.92 and a short float of 17.6% with 3.87 days to cover. Shares are down 9.7% year-to-date as of the close of trading on Friday.
Analysis:
rates Cloud Peak Energy as a
. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, a generally disappointing performance in the stock itself and poor profit margins.
Highlights from the ratings report include:
- Net operating cash flow has significantly increased by 56.48% to $56.06 million when compared to the same quarter last year. In addition, CLOUD PEAK ENERGY INC has also vastly surpassed the industry average cash flow growth rate of -12.58%.
- The current debt-to-equity ratio, 0.52, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.86 is somewhat weak and could be cause for future problems.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 55.78%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 60.86% 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.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 59.2% when compared to the same quarter one year ago, falling from $13.90 million to $5.67 million.
- You can view the full Cloud Peak Energy Ratings Report.
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