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 $8.3 million.
  • CRR has traded 63,040 shares today.
  • CRR is trading at 2.28 times the normal volume for the stock at this time of day.
  • CRR is trading at a new low 4.06% 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 2.4%. Currently there is 1 analyst that rates Carbo Ceramics a buy, 2 analysts rate it a sell, and 6 rate it a hold.

The average volume for Carbo Ceramics has been 740,800 shares per day over the past 30 days. Carbo Ceramics has a market cap of $286.3 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.36 and a short float of 58.6% with 11.72 days to cover. Shares are down 28.3% year-to-date as of the close of trading on Tuesday.

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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 disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • 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.
  • Net operating cash flow has significantly decreased to -$8.30 million or 115.61% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • CRR's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 68.72%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.
  • Along with the very weak revenue results, CRR underperformed when compared to the industry average of 35.8%. Since the same quarter one year prior, revenues plummeted by 55.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • CARBO CERAMICS INC has improved earnings per share by 13.7% 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, CARBO CERAMICS INC swung to a loss, reporting -$4.75 versus $2.42 in the prior year. This year, the market expects an improvement in earnings (-$3.27 versus -$4.75).

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