Trade-Ideas LLC identified

Alon USA Energy

(

ALJ

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Alon USA Energy as such a stock due to the following factors:

  • ALJ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.3 million.
  • ALJ has traded 78,368 shares today.
  • ALJ is trading at 2.43 times the normal volume for the stock at this time of day.
  • ALJ is trading at a new low 6.12% 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 ALJ:

Alon USA Energy, Inc. refines and markets petroleum products, primarily in the South Central, Southwestern, and Western regions of the United States. It operates in three segments: Refining and Marketing, Asphalt, and Retail. The stock currently has a dividend yield of 5.9%. ALJ has a PE ratio of 14. Currently there are no analysts that rate Alon USA Energy a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Alon USA Energy has been 931,600 shares per day over the past 30 days. Alon USA Energy has a market cap of $766.9 million and is part of the basic materials sector and energy industry. The stock has a beta of 0.96 and a short float of 30.1% with 7.83 days to cover. Shares are down 26.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Alon USA Energy as a

hold

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, a generally disappointing performance in the stock itself and poor profit margins.

Highlights from the ratings report include:

  • Net operating cash flow has slightly increased to $49.76 million or 1.38% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -39.44%.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, ALON USA ENERGY INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • The share price of ALON USA ENERGY INC has not done very well: it is down 21.76% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • 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 Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 883.3% when compared to the same quarter one year ago, falling from $6.71 million to -$52.53 million.

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