Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Taminco as such a stock due to the following factors:
- TAM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.2 million.
- TAM is making at least a new 3-day high.
- TAM has a PE ratio of 39.4.
- TAM is mentioned 0.68 times per day on StockTwits.
- TAM has not yet been mentioned on StockTwits today.
- TAM is currently in the upper 20% of its 1-year range.
- TAM is in the upper 35% of its 20-day range.
- TAM is in the upper 45% of its 5-day range.
- TAM is currently trading above yesterday's high.
'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.
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More details on TAM:
Taminco Corporation, together with its subsidiaries, produces and distributes alkylamines and alkylamine derivatives in the United States, Belgium, and internationally. The company operates through three segments: Functional Amines, Specialty Amines, and Crop Protection. TAM has a PE ratio of 39.4. Currently there are no analysts that rate Taminco a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Taminco has been 491,200 shares per day over the past 30 days. Taminco has a market cap of $1.7 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.74 and a short float of 3% with 3.15 days to cover. Shares are up 28.5% year-to-date as of the close of trading on Friday.
rates Taminco as a
. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally high debt management risk.
Highlights from the ratings report include:
- The gross profit margin for TAMINCO CORP is currently lower than what is desirable, coming in at 26.29%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 7.85% trails that of the industry average.
- Currently the debt-to-equity ratio of 1.88 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Even though the debt-to-equity ratio is weak, TAM's quick ratio is somewhat strong at 1.07, demonstrating the ability to handle short-term liquidity needs.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Chemicals industry and the overall market, TAMINCO CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- This stock has increased by 28.24% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
- TAMINCO CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, TAMINCO CORP continued to lose money by earning -$0.11 versus -$0.82 in the prior year. This year, the market expects an improvement in earnings ($0.85 versus -$0.11).
- You can view the full Taminco Ratings Report.