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Trade-Ideas LLC identified
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Sinocoking Coal and Coke Chemicals as such a stock due to the following factors:
- SCOK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.2 million.
- SCOK has traded 3.6 million shares today.
- SCOK is down 4.3% today.
- SCOK was up 59.1% yesterday.
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More details on SCOK:
SinoCoking Coal and Coke Chemical Industries, Inc. operates as a coal and coke producer in the People's Republic of China. Its products include raw coal, washed coal, medium or mid-coal, coal slurries, coke, coal tar, and crude benzol. SCOK has a PE ratio of 47.0.
The average volume for Sinocoking Coal and Coke Chemicals has been 2.1 million shares per day over the past 30 days. Sinocoking Coal and Coke has a market cap of $56.3 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.49 and a short float of 4.4% with 0.19 days to cover. Shares are up 222.4% year-to-date as of the close of trading on Monday.
rates Sinocoking Coal and Coke Chemicals as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and poor profit margins.
Highlights from the ratings report include:
- Compared to its closing price of one year ago, SCOK's share price has jumped by 94.40%, exceeding the performance of the broader market during that same time frame. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Oil, Gas & Consumable Fuels industry average. The net income increased by 11.0% when compared to the same quarter one year prior, going from -$0.95 million to -$0.84 million.
- Net operating cash flow has significantly decreased to $0.10 million or 92.44% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- 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 Oil, Gas & Consumable Fuels industry and the overall market, SINOCOKING COAL & COKE CHEM's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Sinocoking Coal and Coke Chemicals Ratings Report.