Trade-Ideas LLC identified Green Plains ( GPRE) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Green Plains as such a stock due to the following factors:

  • GPRE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.2 million.
  • GPRE has traded 51,695 shares today.
  • GPRE is trading at 3.18 times the normal volume for the stock at this time of day.
  • GPRE is trading at a new high 3.08% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 GPRE: Green Plains Inc. produces, markets, and distributes ethanol in the United States and internationally. The company operates through four segments: Ethanol Production; Agribusiness; Marketing and Distribution; and Partnership. The stock currently has a dividend yield of 2.6%. GPRE has a PE ratio of 102. Currently there are 3 analysts that rate Green Plains a buy, no analysts rate it a sell, and 2 rate it a hold. The average volume for Green Plains has been 686,800 shares per day over the past 30 days. Green Plains has a market cap of $702.9 million and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.61 and a short float of 10.5% with 5.26 days to cover. Shares are down 26.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Green Plains as a

hold

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and poor profit margins. Highlights from the ratings report include:

  • Net operating cash flow has significantly increased by 540.77% to $17.71 million when compared to the same quarter last year. In addition, GREEN PLAINS INC has also vastly surpassed the industry average cash flow growth rate of -39.87%.
  • Despite the weak revenue results, GPRE has outperformed against the industry average of 34.1%. Since the same quarter one year prior, revenues fell by 10.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • GPRE's debt-to-equity ratio of 0.85 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.18 is sturdy.
  • 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 Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 108.5% when compared to the same quarter one year ago, falling from $42.24 million to -$3.59 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 42.71%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 108.41% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.

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