Trade-Ideas LLC identified

Carbo Ceramics

(

CRR

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

  • CRR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.4 million.
  • CRR has traded 132,437 shares today.
  • CRR is up 4.7% today.
  • CRR was down 11.9% yesterday.

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

More details on CRR:

CARBO Ceramics Inc., an oilfield services technology company, manufactures and sells ceramic proppants, resin-coated ceramic, and resin-coated sand proppants for use in the hydraulic fracturing of natural gas and oil wells in the United States and internationally. The stock currently has a dividend yield of 2.3%. Currently there are 2 analysts that rate Carbo Ceramics a buy, 2 analysts rate it a sell, and 7 rate it a hold.

The average volume for Carbo Ceramics has been 619,100 shares per day over the past 30 days. Carbo Ceramics has a market cap of $402.1 million and is part of the basic materials sector and energy industry. The stock has a beta of 2.13 and a short float of 41% with 7.38 days to cover. Shares are down 11.5% year-to-date as of the close of trading on Wednesday.

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 Carbo Ceramics as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • CARBO CERAMICS INC 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 two years. We anticipate that this should continue in the coming year. During the past fiscal year, CARBO CERAMICS INC reported lower earnings of $2.42 versus $3.68 in the prior year. For the next year, the market is expecting a contraction of 206.2% in earnings (-$2.57 versus $2.42).
  • 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 Energy Equipment & Services industry. The net income has significantly decreased by 201.1% when compared to the same quarter one year ago, falling from $13.75 million to -$13.90 million.
  • 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, CARBO CERAMICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CARBO CERAMICS INC is currently extremely low, coming in at 13.61%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -18.33% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to $8.68 million or 77.90% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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.