Trade-Ideas LLC identified

AmeriGas Partners

(

APU

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified AmeriGas Partners as such a stock due to the following factors:

  • APU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.3 million.
  • APU has traded 56,773 shares today.
  • APU is up 3.3% today.
  • APU was down 5.5% yesterday.

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More details on APU:

AmeriGas Partners, L.P. distributes propane and related equipment and supplies in the United States. It serves approximately 2 million residential, commercial, industrial, agricultural, wholesale, and motor fuel customers in 50 states through approximately 2,000 propane distribution locations. The stock currently has a dividend yield of 10.8%. APU has a PE ratio of 18. Currently there is 1 analyst that rates AmeriGas Partners a buy, 1 analyst rates it a sell, and 6 rate it a hold.

TheStreet Recommends

The average volume for AmeriGas Partners has been 282,600 shares per day over the past 30 days. AmeriGas has a market cap of $3.2 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.41 and a short float of 1.5% with 1.71 days to cover. Shares are down 32.5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates AmeriGas Partners as a

hold

. The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and weak operating cash flow.

Highlights from the ratings report include:

  • The gross profit margin for AMERIGAS PARTNERS -LP is rather high; currently it is at 61.43%. It has increased significantly from the same period last year.
  • APU, with its decline in revenue, underperformed when compared the industry average of 8.9%. Since the same quarter one year prior, revenues fell by 25.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The debt-to-equity ratio is very high at 2.02 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.43, which clearly demonstrates the inability to cover short-term cash needs.
  • Net operating cash flow has decreased to $99.81 million or 14.60% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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