Trade-Ideas LLC identified

Plains All American Pipeline

(

PAA

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Plains All American Pipeline as such a stock due to the following factors:

  • PAA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $95.5 million.
  • PAA has traded 57,520 shares today.
  • PAA is up 8.4% today.
  • PAA was down 8.3% yesterday.

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More details on PAA:

Plains All American Pipeline, L.P., through with its subsidiaries, engages in the transportation, storage, terminalling, and marketing of crude oil, natural gas liquids (NGL), natural gas, and refined products in the United States and Canada. The stock currently has a dividend yield of 14.2%. PAA has a PE ratio of 16. Currently there are 7 analysts that rate Plains All American Pipeline a buy, no analysts rate it a sell, and 12 rate it a hold.

TheStreet Recommends

The average volume for Plains All American Pipeline has been 4.8 million shares per day over the past 30 days. Plains All American Pipeline has a market cap of $8.2 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.28 and a short float of 1.5% with 1.10 days to cover. Shares are down 10.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Plains All American Pipeline as a

hold

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and notable return on equity. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, generally higher debt management risk and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • Net operating cash flow has significantly increased by 78.41% to $562.00 million when compared to the same quarter last year. In addition, PLAINS ALL AMER PIPELNE -LP has also vastly surpassed the industry average cash flow growth rate of -26.59%.
  • Along with the very weak revenue results, PAA underperformed when compared to the industry average of 36.5%. Since the same quarter one year prior, revenues plummeted by 50.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • PLAINS ALL AMER PIPELNE -LP 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, PLAINS ALL AMER PIPELNE -LP reported lower earnings of $2.37 versus $2.80 in the prior year. For the next year, the market is expecting a contraction of 34.4% in earnings ($1.56 versus $2.37).
  • The debt-to-equity ratio of 1.31 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, PAA has a quick ratio of 0.54, this demonstrates the lack of ability of the company to cover short-term liquidity needs.

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