Trade-Ideas LLC identified

Semgroup

(

SEMG

) as a strong on high relative volume 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 $17.3 million.
  • SEMG has traded 119,537 shares today.
  • SEMG is trading at 9.44 times the normal volume for the stock at this time of day.
  • SEMG is trading at a new high 4.07% 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.

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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 6.1%. SEMG has a PE ratio of 95. 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 584,700 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 2.97 days to cover. Shares are up 2.2% year-to-date as of the close of trading on Friday.

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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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, a generally disappointing performance in the stock itself and generally higher debt management risk.

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.
  • Net operating cash flow has significantly increased by 156.36% to $47.54 million when compared to the same quarter last year. In addition, SEMGROUP CORP has also vastly surpassed the industry average cash flow growth rate of -49.05%.
  • 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 65.20%, 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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