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Trade-Ideas LLC identified
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Molycorp as such a stock due to the following factors:
- MCP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.0 million.
- MCP has traded 2.3 million shares today.
- MCP is trading at 7.07 times the normal volume for the stock at this time of day.
- MCP is trading at a new high 13.35% 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 MCP:
Molycorp, Inc. produces and sells rare earths and rare metal materials in the United States and internationally. Currently there are no analysts that rate Molycorp a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for Molycorp has been 5.5 million shares per day over the past 30 days. Molycorp has a market cap of $203.2 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of 2.62 and a short float of 31.4% with 5.06 days to cover. Shares are up 5.2% year-to-date as of the close of trading on Thursday.
rates Molycorp as a
. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, poor profit margins, generally disappointing historical performance in the stock itself and generally high debt management risk.
Highlights from the ratings report include:
- 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 Metals & Mining industry. The net income has significantly decreased by 50.4% when compared to the same quarter one year ago, falling from -$69.93 million to -$105.18 million.
- Net operating cash flow has significantly decreased to -$28.16 million or 76.29% 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.
- The gross profit margin for MOLYCORP INC is currently extremely low, coming in at 3.47%. Regardless of MCP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, MCP's net profit margin of -84.86% significantly underperformed when compared to the industry average.
- The debt-to-equity ratio of 1.45 is relatively high when compared with the industry average, suggesting a need for better debt level management. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 2.53, which shows the ability to cover short-term cash needs.
- Looking at the price performance of MCP's shares over the past 12 months, there is not much good news to report: the stock is down 84.77%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- You can view the full Molycorp Ratings Report.