Trade-Ideas LLC identified

Hi-Crush Partners

(

HCLP

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

  • HCLP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.4 million.
  • HCLP has traded 78,408 shares today.
  • HCLP is trading at 2.46 times the normal volume for the stock at this time of day.
  • HCLP is trading at a new low 5.01% 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 HCLP:

Hi-Crush Partners LP produces and supplies monocrystalline sand in the United States. The monocrystalline sand is a mineral that is used as a proppant to enhance the recovery rates of hydrocarbons from oil and natural gas wells. The stock currently has a dividend yield of 27.6%. HCLP has a PE ratio of 9. Currently there are 4 analysts that rate Hi-Crush Partners a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Hi-Crush Partners has been 387,000 shares per day over the past 30 days. Hi-Crush has a market cap of $237.2 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of 1.00 and a short float of 4.1% with 1.60 days to cover. Shares are up 1.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Hi-Crush Partners as a

hold

. Among the primary strengths of the company is its respectable return on equity which we feel is likely to continue. At the same time, however, we also find weaknesses including poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • Despite the weak revenue results, HCLP has outperformed against the industry average of 39.5%. Since the same quarter one year prior, revenues fell by 20.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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 Metals & Mining industry and the overall market, HI-CRUSH PARTNERS LP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for HI-CRUSH PARTNERS LP is rather low; currently it is at 24.20%. It has decreased significantly from the same period last year.
  • Net operating cash flow has significantly decreased to $9.11 million or 62.28% 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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