Perilous Reversal Stock: BreitBurn Energy Partners (BBEP)
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.
Trade-Ideas LLC identified
(
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified BreitBurn Energy Partners as such a stock due to the following factors:
- BBEP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.7 million.
- BBEP has traded 73,557 shares today.
- BBEP is down 4.8% today.
- BBEP was up 7.8% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in BBEP with the Ticky from Trade-Ideas. See the FREE profile for BBEP NOW at Trade-Ideas
More details on BBEP:
BreitBurn Energy Partners LP, an independent oil and gas partnership, acquires, exploits, and develops oil, natural gas liquids (NGLs), and natural gas properties in the United States. The stock currently has a dividend yield of 17.3%. BBEP has a PE ratio of 1.9. Currently there are 3 analysts that rate BreitBurn Energy Partners a buy, 2 analysts rate it a sell, and 10 rate it a hold.
The average volume for BreitBurn Energy Partners has been 3.8 million shares per day over the past 30 days. BreitBurn Energy has a market cap of $1.2 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.23 and a short float of 8.7% with 4.11 days to cover. Shares are down 17.3% year-to-date as of the close of trading on Tuesday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
Analysis:
rates BreitBurn Energy Partners as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and generally higher debt management risk.
Highlights from the ratings report include:
- BBEP's very impressive revenue growth greatly exceeded the industry average of 19.6%. Since the same quarter one year prior, revenues leaped by 344.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 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 789.2% when compared to the same quarter one year prior, rising from -$58.79 million to $405.17 million.
- BREITBURN ENERGY PARTNERS LP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, BREITBURN ENERGY PARTNERS LP turned its bottom line around by earning $2.33 versus -$0.40 in the prior year. For the next year, the market is expecting a contraction of 89.3% in earnings ($0.25 versus $2.33).
- BBEP's debt-to-equity ratio of 0.89 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that BBEP's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.50 is low and demonstrates weak liquidity.
- Net operating cash flow has decreased to $62.84 million or 30.35% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full BreitBurn Energy Partners Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
null