Perilous Reversal Watch: Century Aluminum (CENX)
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 Century Aluminum as such a stock due to the following factors:
- CENX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.4 million.
- CENX has traded 203,342 shares today.
- CENX is down 3.7% today.
- CENX was up 15.7% yesterday.
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More details on CENX:
Century Aluminum Company, together with its subsidiaries, produces primary aluminum in the United States and Iceland. It produces standard grade and value-added primary aluminum products; and carbon products, such as anodes and cathodes. CENX has a PE ratio of 8. Currently there is 1 analyst that rates Century Aluminum a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for Century Aluminum has been 3.3 million shares per day over the past 30 days. Century Aluminum has a market cap of $321.5 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.98 and a short float of 43.8% with 3.58 days to cover. Shares are down 82.5% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Century Aluminum as a
. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- CENX's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that CENX's debt-to-equity ratio is low, the quick ratio, which is currently 0.57, displays a potential problem in covering short-term cash needs.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 211.3% when compared to the same quarter one year ago, falling from $50.41 million to -$56.11 million.
- Net operating cash flow has significantly decreased to -$77.81 million or 187.33% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full Century Aluminum Ratings Report.
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