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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.

Trade-Ideas LLC identified

Intrepid Potash

(

IPI

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

  • IPI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.5 million.
  • IPI has traded 126,787 shares today.
  • IPI is trading at 5.48 times the normal volume for the stock at this time of day.
  • IPI is trading at a new high 5.02% 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 IPI:

TheStreet Recommends

Intrepid Potash, Inc. engages in the extraction, production, and sale of potassium containing products in the United States. It produces muriate of potash and langbeinite, a low-chloride potassium fertilizer with the additional benefits of sulfate and magnesium. IPI has a PE ratio of 91.2. Currently there is 1 analyst that rates Intrepid Potash a buy, 3 analysts rate it a sell, and 4 rate it a hold.

The average volume for Intrepid Potash has been 727,200 shares per day over the past 30 days. Intrepid Potash has a market cap of $903.2 million and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.11 and a short float of 20.6% with 21.66 days to cover. Shares are down 12.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Intrepid Potash as a

hold

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

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 10.4%. Since the same quarter one year prior, revenues rose by 33.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • IPI's debt-to-equity ratio is very low at 0.16 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, IPI has a quick ratio of 2.37, which demonstrates the ability of the company to cover short-term liquidity needs.
  • INTREPID POTASH INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, INTREPID POTASH INC reported lower earnings of $0.13 versus $0.30 in the prior year. This year, the market expects an improvement in earnings ($0.19 versus $0.13).
  • IPI has underperformed the S&P 500 Index, declining 22.47% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • 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 Chemicals industry and the overall market, INTREPID POTASH INC's return on equity significantly trails that of both the industry average and the S&P 500.

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