Tetra Technologies (TTI): Today's Weak On High Volume Stock
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 Tetra Technologies as such a stock due to the following factors:
- TTI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.1 million.
- TTI has traded 169,186 shares today.
- TTI is trading at 5.92 times the normal volume for the stock at this time of day.
- TTI is trading at a new low 6.03% 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 TTI:
TETRA Technologies, Inc. operates as a diversified oil and gas services company. The company operates in three divisions: Fluids, Production Enhancement, and Offshore. Currently there are 7 analysts that rate Tetra Technologies a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Tetra Technologies has been 940,800 shares per day over the past 30 days. Tetra has a market cap of $396.4 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.94 and a short float of 6.1% with 2.85 days to cover. Shares are down 10.6% year-to-date as of the close of trading on Friday.
Analysis:
rates Tetra Technologies as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow.
Highlights from the ratings report include:
- 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 Energy Equipment & Services industry. The net income has significantly decreased by 187.0% when compared to the same quarter one year ago, falling from $12.11 million to -$10.54 million.
- Currently the debt-to-equity ratio of 1.77 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with the unfavorable debt-to-equity ratio, TTI maintains a poor quick ratio of 0.75, which illustrates the inability to avoid short-term cash problems.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Energy Equipment & Services industry and the overall market, TETRA TECHNOLOGIES INC/DE's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for TETRA TECHNOLOGIES INC/DE is rather low; currently it is at 22.19%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -3.43% trails that of the industry average.
- Net operating cash flow has decreased to $11.32 million or 16.45% 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 Tetra Technologies Ratings Report.
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