Strong On High Relative Volume: Alliance Resource Partners (ARLP)
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Alliance Resource Partners as such a stock due to the following factors:
- ARLP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.8 million.
- ARLP has traded 164,482 shares today.
- ARLP is trading at 14.74 times the normal volume for the stock at this time of day.
- ARLP is trading at a new high 14.12% 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 ARLP:
Alliance Resource Partners, L.P. produces and markets coal primarily to utilities and industrial users in the United States. It operates in two segments, Illinois Basin and Appalachia; and Other and Corporate. The stock currently has a dividend yield of 9.9%. ARLP has a PE ratio of 11. Currently there are 3 analysts that rate Alliance Resource Partners a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Alliance Resource Partners has been 322,400 shares per day over the past 30 days. Alliance Resource has a market cap of $1.3 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.71 and a short float of 1.1% with 1.16 days to cover. Shares are up 31.2% year-to-date as of the close of trading on Monday.
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Analysis:
rates Alliance Resource Partners as a
. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- 37.05% is the gross profit margin for ALLIANCE RESOURCE PTNRS -LP which we consider to be strong. Regardless of ARLP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ARLP's net profit margin of 11.45% compares favorably to the industry average.
- ARLP, with its decline in revenue, slightly underperformed the industry average of 24.0%. Since the same quarter one year prior, revenues fell by 26.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The debt-to-equity ratio of 1.03 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with this, the company manages to maintain a quick ratio of 0.37, which clearly demonstrates the inability to cover short-term cash needs.
- Net operating cash flow has significantly decreased to $80.59 million or 50.13% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, ALLIANCE RESOURCE PTNRS -LP has marginally lower results.
- You can view the full Alliance Resource Partners Ratings Report.
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