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 "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Bonanza Creek Energy as such a stock due to the following factors:
- BCEI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $38.1 million.
- BCEI has traded 819,233 shares today.
- BCEI traded in a range 202.5% of the normal price range with a price range of $3.55.
- BCEI traded below its daily resistance level (quality: 12 days, meaning that the stock is crossing a resistance level set by the last 12 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on BCEI:
Bonanza Creek Energy, Inc., together with its subsidiaries, operates as an independent energy company in the United States. BCEI has a PE ratio of 36.4. Currently there are 11 analysts that rate Bonanza Creek Energy a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Bonanza Creek Energy has been 1.0 million shares per day over the past 30 days. Bonanza Creek Energy has a market cap of $2.5 billion and is part of the basic materials sector and energy industry. The stock has a beta of 2.76 and a short float of 10.5% with 5.23 days to cover. Shares are up 41.1% year-to-date as of the close of trading on Monday.
rates Bonanza Creek Energy as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, solid stock price performance and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- BCEI's very impressive revenue growth greatly exceeded the industry average of 3.2%. Since the same quarter one year prior, revenues leaped by 62.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income increased by 19.5% when compared to the same quarter one year prior, going from $11.26 million to $13.46 million.
- Net operating cash flow has significantly increased by 102.87% to $77.68 million when compared to the same quarter last year. In addition, BONANZA CREEK ENERGY INC has also vastly surpassed the industry average cash flow growth rate of 17.51%.
- Compared to its closing price of one year ago, BCEI's share price has jumped by 60.13%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- BONANZA CREEK ENERGY INC's earnings per share declined by 14.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BONANZA CREEK ENERGY INC increased its bottom line by earning $1.72 versus $1.11 in the prior year. This year, the market expects an improvement in earnings ($2.74 versus $1.72).
- You can view the full Bonanza Creek Energy Ratings Report.