Trade-Ideas LLC identified

Calumet Specialty Products Partners

(

CLMT

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

  • CLMT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.0 million.
  • CLMT has traded 146,854 shares today.
  • CLMT is trading at 2.53 times the normal volume for the stock at this time of day.
  • CLMT is trading at a new high 3.09% 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 CLMT:

Calumet Specialty Products Partners, L.P. produces and sells specialty hydrocarbon products in North America. It operates in three segments: Specialty Products, Fuel Products, and Oilfield Services. The stock currently has a dividend yield of 13.4%. Currently there are 7 analysts that rate Calumet Specialty Products Partners a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Calumet Specialty Products Partners has been 377,700 shares per day over the past 30 days. Calumet Specialty has a market cap of $1.5 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.40 and a short float of 1.3% with 0.90 days to cover. Shares are down 11.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Calumet Specialty Products Partners as a

hold

. Among the primary strengths of the company is its generally strong cash flow from operations. At the same time, however, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

Highlights from the ratings report include:

  • Net operating cash flow has increased to $136.10 million or 11.01% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -26.85%.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 36.8%. Since the same quarter one year prior, revenues fell by 32.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • CALUMET SPECIALTY PRODS -LP 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, CALUMET SPECIALTY PRODS -LP reported poor results of -$1.80 versus -$0.10 in the prior year. This year, the market expects an improvement in earnings (-$0.27 versus -$1.80).
  • The debt-to-equity ratio is very high at 2.26 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, CLMT has a quick ratio of 0.52, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • 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, CALUMET SPECIALTY PRODS -LP's return on equity significantly trails that of both the industry average and the S&P 500.

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