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Trade-Ideas LLC identified

Southcross Energy Partners

(

SXE

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Southcross Energy Partners as such a stock due to the following factors:

  • SXE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.6 million.
  • SXE has traded 1.3 million shares today.
  • SXE is trading at 11.17 times the normal volume for the stock at this time of day.
  • SXE is trading at a new high 29.08% 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 SXE:

TheStreet Recommends

Southcross Energy Partners, L.P., together with its subsidiaries, provides natural gas gathering, processing, treating, compression, and transportation services in the United States. The company also offers natural gas liquid (NGL) fractionation and transportation services. The stock currently has a dividend yield of 362%. Currently there are no analysts that rate Southcross Energy Partners a buy, 3 analysts rate it a sell, and 2 rate it a hold.

The average volume for Southcross Energy Partners has been 664,100 shares per day over the past 30 days. Southcross Energy has a market cap of $27.6 million and is part of the utilities sector and utilities industry. The stock has a beta of 3.49 and a short float of 2.5% with 0.18 days to cover. Shares are down 65.7% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Southcross Energy Partners as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, generally disappointing historical performance in the stock itself and poor profit margins.

Highlights from the ratings report include:

  • 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 on the basis of return on equity, SOUTHCROSS ENERGY PRTNRS LP underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • SXE's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 93.78%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The gross profit margin for SOUTHCROSS ENERGY PRTNRS LP is currently extremely low, coming in at 11.28%. Regardless of SXE's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -5.37% trails the industry average.
  • SOUTHCROSS ENERGY PRTNRS LP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, SOUTHCROSS ENERGY PRTNRS LP reported poor results of -$1.10 versus -$0.72 in the prior year.
  • SXE's debt-to-equity ratio of 0.89 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. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.74 is weak.

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