Storm The Castle Stock Of The Day: Mosaic (MOS)
Trade-Ideas LLC identified
(
) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Mosaic as such a stock due to the following factors:
- MOS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $143.3 million.
- MOS has traded 3.0 million shares today.
- MOS is trading at 2.01 times the normal volume for the stock at this time of day.
- MOS crossed above its 200-day simple moving average.
'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. 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 on. 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 MOS:
The Mosaic Company, through its subsidiaries, produces and markets concentrated phosphate and potash crop nutrients primarily for the agricultural industry worldwide. The company operates through three segments: Phosphates, Potash, and International Distribution. The stock currently has a dividend yield of 4.2%. MOS has a PE ratio of 1. Currently there are 2 analysts that rate Mosaic a buy, 4 analysts rate it a sell, and 7 rate it a hold.
The average volume for Mosaic has been 5.5 million shares per day over the past 30 days. Mosaic has a market cap of $9.3 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 0.96 and a short float of 10.8% with 7.18 days to cover. Shares are down 0.7% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Mosaic as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and poor profit margins.
Highlights from the ratings report include:
- The current debt-to-equity ratio, 0.39, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.09, which illustrates the ability to avoid short-term cash problems.
- MOS, with its decline in revenue, underperformed when compared the industry average of 5.9%. Since the same quarter one year prior, revenues fell by 21.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- Net operating cash flow has significantly decreased to $265.90 million or 59.43% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Chemicals industry and the overall market, MOSAIC CO's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full Mosaic Ratings Report.
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