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.

Trade-Ideas LLC identified

Century Aluminum

(

CENX

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

  • CENX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.8 million.
  • CENX has traded 71,556 shares today.
  • CENX is up 5.7% today.
  • CENX was down 5.5% yesterday.

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More details on CENX:

Century Aluminum Company, together with its subsidiaries, produces primary aluminum in the United States and Iceland. It produces standard grade and value-added primary aluminum products; and carbon products, such as anodes and cathodes. CENX has a PE ratio of 8. Currently there are 2 analysts that rate Century Aluminum a buy, 2 analysts rate it a sell, and 3 rate it a hold.

The average volume for Century Aluminum has been 2.3 million shares per day over the past 30 days. Century Aluminum has a market cap of $809.9 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.57 and a short float of 40.6% with 6.40 days to cover. Shares are down 63.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Century Aluminum as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income 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 and poor profit margins.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 16.6%. Since the same quarter one year prior, revenues rose by 39.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Metals & Mining industry and the overall market, CENTURY ALUMINUM CO's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • CENX's debt-to-equity ratio is very low at 0.22 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.80 is somewhat weak and could be cause for future problems.
  • The gross profit margin for CENTURY ALUMINUM CO is rather low; currently it is at 19.09%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, CENX's net profit margin of 12.54% compares favorably to the industry average.
  • CENX'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 49.30%, 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. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

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