Trade-Ideas LLC identified

Semgroup

(

SEMG

) as a "dead cat bounce" (down big yesterday but up 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 $15.7 million.
  • SEMG has traded 329,671 shares today.
  • SEMG is up 3.1% today.
  • SEMG was down 5.3% yesterday.

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More details on SEMG:

SemGroup Corporation provides gathering, transportation, storage, distribution, marketing, and other midstream services for producers, refiners of petroleum products, and other market participants. The stock currently has a dividend yield of 6.2%. SEMG has a PE ratio of 94. Currently there are 5 analysts that rate Semgroup a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Semgroup has been 579,100 shares per day over the past 30 days. Semgroup has a market cap of $1.3 billion and is part of the basic materials sector and energy industry. The stock has a beta of 2.28 and a short float of 3.7% with 3.12 days to cover. Shares are down 1.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Semgroup as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 24.6%. Since the same quarter one year prior, revenues slightly increased by 5.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • SEMG's debt-to-equity ratio of 0.97 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further.
  • SEMGROUP CORP 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, SEMGROUP CORP increased its bottom line by earning $0.69 versus $0.64 in the prior year. For the next year, the market is expecting a contraction of 105.8% in earnings (-$0.04 versus $0.69).
  • 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 1141.5% when compared to the same quarter one year ago, falling from $1.47 million to -$15.27 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 62.13%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1266.66% 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.

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