Trade-Ideas LLC identified

Pacific Ethanol

(

PEIX

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

  • PEIX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.2 million.
  • PEIX has traded 183,441 shares today.
  • PEIX is trading at 2.18 times the normal volume for the stock at this time of day.
  • PEIX is trading at a new high 4.01% 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.

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

More details on PEIX:

Pacific Ethanol, Inc. produces and markets low-carbon renewable fuels in the Western United States. It sells ethanol primarily to gasoline refining and distribution companies. The company also provides ethanol transportation, storage, and delivery services through third-party service providers. Currently there are 3 analysts that rate Pacific Ethanol a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Pacific Ethanol has been 1.0 million shares per day over the past 30 days. Pacific Ethanol has a market cap of $161.0 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.58 and a short float of 16.6% with 4.20 days to cover. Shares are down 59% year-to-date as of the close of trading on Tuesday.

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 Pacific Ethanol as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

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 Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 464.3% when compared to the same quarter one year ago, falling from $4.03 million to -$14.66 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, PACIFIC ETHANOL INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • The gross profit margin for PACIFIC ETHANOL INC is currently extremely low, coming in at 2.54%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -3.85% trails that of the industry average.
  • Net operating cash flow has significantly decreased to -$28.81 million or 215.58% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 57.32%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 340.00% compared to 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.

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.