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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 $6.1 million.
  • IPI has traded 214,217 shares today.
  • IPI is trading at 3.62 times the normal volume for the stock at this time of day.
  • IPI is trading at a new low 6.06% 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 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 82. Currently there is 1 analyst that rates Intrepid Potash a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Intrepid Potash has been 858,600 shares per day over the past 30 days. Intrepid Potash has a market cap of $499.7 million and is part of the basic materials sector and chemicals industry. The stock has a beta of 0.78 and a short float of 18.4% with 9.94 days to cover. Shares are down 54.8% year-to-date as of the close of trading on Friday.

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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 generally disappointing historical performance in the stock itself, feeble growth in its earnings per share, unimpressive growth in net income, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 53.18%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 200.00% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, IPI is still more expensive than most of the other companies in its industry.
  • 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 157.7% in earnings (-$0.08 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.
  • The gross profit margin for INTREPID POTASH INC is currently lower than what is desirable, coming in at 29.30%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -6.70% is significantly below that of the industry average.
  • Net operating cash flow has decreased to $22.52 million or 41.54% 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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