Skip to main content

Trade-Ideas LLC identified

Intrepid Potash

(

IPI

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

  • IPI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.4 million.
  • IPI has traded 172,846 shares today.
  • IPI is trading at 6.19 times the normal volume for the stock at this time of day.
  • IPI is trading at a new low 6.01% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in IPI with the Ticky from Trade-Ideas. See the FREE profile for IPI NOW at Trade-Ideas

More details on IPI:

TheStreet Recommends

Intrepid Potash, Inc. engages in the extraction, production, and sale of potassium containing products in the United States. It produces muriate of potash and langbeinite, a low-chloride potassium fertilizer with the additional benefits of sulfate and magnesium. IPI has a PE ratio of 84. Currently there is 1 analyst that rates Intrepid Potash a buy, 2 analysts rate it a sell, and 4 rate it a hold.

The average volume for Intrepid Potash has been 843,700 shares per day over the past 30 days. Intrepid Potash has a market cap of $509.6 million and is part of the basic materials sector and chemicals industry. The stock has a beta of 0.42 and a short float of 17.9% with 17.81 days to cover. Shares are down 53.2% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Intrepid Potash as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures 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, feeble growth in the company's earnings per share and unimpressive growth in net income.

Highlights from the ratings report include:

  • IPI's debt-to-equity ratio is very low at 0.16 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.52, which clearly demonstrates the ability to cover short-term cash needs.
  • IPI, with its decline in revenue, underperformed when compared the industry average of 11.0%. Since the same quarter one year prior, revenues fell by 33.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • INTREPID POTASH 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, INTREPID POTASH INC reported lower earnings of $0.13 versus $0.30 in the prior year. For the next year, the market is expecting a contraction of 110.8% in earnings (-$0.01 versus $0.13).
  • 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 Chemicals industry. The net income has significantly decreased by 188.8% when compared to the same quarter one year ago, falling from $5.56 million to -$4.94 million.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.