Trade-Ideas LLC identified

Tetra Technologies

(

TTI

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

  • TTI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.9 million.
  • TTI has traded 93,404 shares today.
  • TTI is trading at 3.60 times the normal volume for the stock at this time of day.
  • TTI is trading at a new low 10.05% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in TTI with the Ticky from Trade-Ideas. See the FREE profile for TTI NOW at Trade-Ideas

More details on TTI:

TETRA Technologies, Inc., together with its subsidiaries, operates as a diversified oil and gas services company. It operates through four divisions: Fluids, Production Testing, Compression, and Offshore. Currently there are 6 analysts that rate Tetra Technologies a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Tetra Technologies has been 969,300 shares per day over the past 30 days. Tetra has a market cap of $430.0 million and is part of the basic materials sector and energy industry. The stock has a beta of 0.35 and a short float of 1.7% with 1.28 days to cover. Shares are down 27.3% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Tetra Technologies as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and disappointing return on equity.

Highlights from the ratings report include:

  • The debt-to-equity ratio is very high at 2.41 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, TTI maintains a poor quick ratio of 0.84, which illustrates the inability to avoid short-term cash problems.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Energy Equipment & Services industry and the overall market, TETRA TECHNOLOGIES INC/DE's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite the weak revenue results, TTI has significantly outperformed against the industry average of 39.1%. Since the same quarter one year prior, revenues slightly dropped by 0.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • TETRA TECHNOLOGIES INC/DE 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, TETRA TECHNOLOGIES INC/DE reported poor results of -$2.15 versus $0.00 in the prior year. This year, the market expects an improvement in earnings ($0.27 versus -$2.15).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 192.6% when compared to the same quarter one year prior, rising from -$10.54 million to $9.76 million.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.