Trade-Ideas LLC identified

Semgroup

(

SEMG

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Semgroup as such a stock due to the following factors:

  • SEMG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.6 million.
  • SEMG has traded 118,035 shares today.
  • SEMG is down 3% today.
  • SEMG was up 8.5% yesterday.

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

More details on SEMG:

SemGroup Corporation, together with its subsidiaries, provides gathering, transportation, storage, distribution, marketing, and other midstream services. It operates through six segments: Crude, SemStream, SemLogistics, SemCAMS, SemMexico, and SemGas. The stock currently has a dividend yield of 10.3%. SEMG has a PE ratio of 2. Currently there are 3 analysts that rate Semgroup a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Recommends

The average volume for Semgroup has been 844,600 shares per day over the past 30 days. Semgroup has a market cap of $768.4 million and is part of the basic materials sector and energy industry. The stock has a beta of 2.18 and a short float of 4.2% with 2.04 days to cover. Shares are down 34.2% year-to-date as of the close of trading on Friday.

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 Semgroup 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 a generally disappointing performance in the stock itself, unimpressive growth in net income and poor profit margins.

Highlights from the ratings report include:

  • Net operating cash flow has increased to $64.09 million or 27.29% when compared to the same quarter last year. In addition, SEMGROUP CORP has also vastly surpassed the industry average cash flow growth rate of -39.95%.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, SEMGROUP CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • The change in net income from the same quarter one year ago has exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has significantly decreased by 80.7% when compared to the same quarter one year ago, falling from $25.26 million to $4.87 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 75.89%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 81.35% 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, SEMG is still more expensive than most of the other companies in its industry.

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.