Trade-Ideas LLC identified

Synergy Resources

(

SYRG

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Synergy Resources as such a stock due to the following factors:

  • SYRG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.9 million.
  • SYRG has traded 259,123 shares today.
  • SYRG is up 3.1% today.
  • SYRG was down 5.7% yesterday.

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More details on SYRG:

Synergy Resources Corporation engages in the acquisition, development, exploitation, exploration, and production of oil and natural gas properties primarily located in the Denver-Julesburg Basin in Colorado. SYRG has a PE ratio of 46. Currently there are 13 analysts that rate Synergy Resources a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Synergy Resources has been 1.6 million shares per day over the past 30 days. Synergy has a market cap of $926.0 million and is part of the basic materials sector and energy industry. The stock has a beta of 0.68 and a short float of 9% with 3.06 days to cover. Shares are down 33.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Synergy Resources as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from the ratings report include:

  • SYRG's debt-to-equity ratio is very low at 0.14 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, SYRG has a quick ratio of 2.21, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has increased to $38.15 million or 35.45% when compared to the same quarter last year. In addition, SYNERGY RESOURCES CORP has also vastly surpassed the industry average cash flow growth rate of -26.70%.
  • Despite the weak revenue results, SYRG has outperformed against the industry average of 36.9%. Since the same quarter one year prior, revenues fell by 10.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • SYNERGY RESOURCES 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. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, SYNERGY RESOURCES CORP reported lower earnings of $0.24 versus $0.37 in the prior year. For the next year, the market is expecting a contraction of 60.4% in earnings ($0.10 versus $0.24).
  • 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 150.6% when compared to the same quarter one year ago, falling from $10.43 million to -$5.28 million.

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