Trade-Ideas LLC identified

Carbo Ceramics

(

CRR

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

  • CRR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.9 million.
  • CRR has traded 184,698 shares today.
  • CRR is trading at 9.69 times the normal volume for the stock at this time of day.
  • CRR is trading at a new low 10.21% 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 CRR:

CARBO Ceramics Inc., an oilfield services technology company, manufactures and sells ceramic proppants, resin-coated ceramic, and resin-coated sand proppants for use in the hydraulic fracturing of natural gas and oil wells in the United States and internationally. The stock currently has a dividend yield of 2%. Currently there are no analysts that rate Carbo Ceramics a buy, 2 analysts rate it a sell, and 7 rate it a hold.

The average volume for Carbo Ceramics has been 667,400 shares per day over the past 30 days. Carbo Ceramics has a market cap of $469.1 million and is part of the basic materials sector and energy industry. The stock has a beta of 2.43 and a short float of 47.3% with 15.48 days to cover. Shares are down 49.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Carbo Ceramics as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • CARBO CERAMICS INC 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, CARBO CERAMICS INC reported lower earnings of $2.42 versus $3.68 in the prior year. For the next year, the market is expecting a contraction of 205.4% in earnings (-$2.55 versus $2.42).
  • 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 173.9% when compared to the same quarter one year ago, falling from $23.02 million to -$17.00 million.
  • 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, CARBO CERAMICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CARBO CERAMICS INC is currently extremely low, coming in at 5.06%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -23.21% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to $6.34 million or 52.70% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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