Trade-Ideas LLC identified

Buckeye Partners

(

BPL

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

  • BPL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $40.3 million.
  • BPL has traded 84,201 shares today.
  • BPL is trading at 3.92 times the normal volume for the stock at this time of day.
  • BPL is trading at a new low 5.55% 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 BPL:

Buckeye Partners, L.P. owns and operates liquid petroleum products pipeline systems in the United States. The company operates through four segments: Pipelines & Terminals, Global Marine Terminals, Merchant Services, and Development & Logistics. The stock currently has a dividend yield of 8.2%. BPL has a PE ratio of 2. Currently there are 4 analysts that rate Buckeye Partners a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Buckeye Partners has been 932,000 shares per day over the past 30 days. Buckeye has a market cap of $7.4 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.15 and a short float of 3.1% with 4.95 days to cover. Shares are down 17.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Buckeye Partners as a

buy

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • Net operating cash flow has increased to $210.83 million or 31.57% when compared to the same quarter last year. In addition, BUCKEYE PARTNERS LP has also vastly surpassed the industry average cash flow growth rate of -37.44%.
  • 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, BUCKEYE PARTNERS LP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • The gross profit margin for BUCKEYE PARTNERS LP is currently lower than what is desirable, coming in at 30.24%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, BPL's net profit margin of 13.73% significantly outperformed against the industry.
  • BUCKEYE PARTNERS LP's earnings per share declined by 12.4% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, BUCKEYE PARTNERS LP reported lower earnings of $2.79 versus $3.23 in the prior year. This year, the market expects an improvement in earnings ($3.37 versus $2.79).
  • Along with the very weak revenue results, BPL underperformed when compared to the industry average of 31.6%. Since the same quarter one year prior, revenues plummeted by 53.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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