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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 or Stephanie Link.

Trade-Ideas LLC identified

Intrepid Potash

(

IPI

) as a strong 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 $8.0 million.
  • IPI has traded 78,593 shares today.
  • IPI is trading at 4.72 times the normal volume for the stock at this time of day.
  • IPI is trading at a new high 4.14% 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 IPI:

TheStreet Recommends

Intrepid Potash, Inc., together with its subsidiaries, produces and markets muriate of potash and langbeinite in the United States. Its langbeinite is a low-chloride potassium fertilizer with the additional benefits of sulfate and magnesium. Currently there are 2 analysts that rate Intrepid Potash a buy, 3 analysts rate it a sell, and 4 rate it a hold.

The average volume for Intrepid Potash has been 725,000 shares per day over the past 30 days. Intrepid Potash has a market cap of $1.0 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 0.98 and a short float of 24% with 20.08 days to cover. Shares are down 4.2% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Intrepid Potash as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • 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 $0.30 versus $1.15 in the prior year. For the next year, the market is expecting a contraction of 73.3% in earnings ($0.08 versus $0.30).
  • 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 161.1% when compared to the same quarter one year ago, falling from $2.03 million to -$1.24 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Chemicals industry and the overall market, INTREPID POTASH INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for INTREPID POTASH INC is currently lower than what is desirable, coming in at 26.00%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -1.20% is significantly below that of the industry average.
  • The share price of INTREPID POTASH INC has not done very well: it is down 20.03% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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