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 $8.4 million.
- TTI has traded 59,282 shares today.
- TTI is trading at 2.24 times the normal volume for the stock at this time of day.
- TTI is trading at a new low 4.09% 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 1.0 million shares per day over the past 30 days. Tetra has a market cap of $439.7 million and is part of the basic materials sector and energy industry. The stock has a beta of 2.24 and a short float of 6.1% with 2.84 days to cover. Shares are down 19.5% 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 feeble growth in its earnings per share.
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 1349.8% when compared to the same quarter one year ago, falling from -$10.33 million to -$149.75 million.
- The debt-to-equity ratio of 1.10 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, TTI maintains a poor quick ratio of 0.72, which illustrates the inability to avoid short-term cash problems.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. 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 23.25%. Regardless of TTI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, TTI's net profit margin of -47.41% significantly underperformed when compared to the industry average.
- TETRA TECHNOLOGIES INC/DE has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, TETRA TECHNOLOGIES INC/DE reported poor results of -$2.15 versus $0.00 in the prior year. This year, the market expects an improvement in earnings ($0.09 versus -$2.15).
- You can view the full Tetra Technologies Ratings Report.
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