Trade-Ideas LLC identified

Anadarko Petroleum

(

APC

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

  • APC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $485.5 million.
  • APC has traded 105,084 shares today.
  • APC is up 3.5% today.
  • APC was down 8.9% yesterday.

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More details on APC:

Anadarko Petroleum Corporation engages in the exploration, development, production, and marketing of oil and gas properties. It operates through three segments: Oil and Gas Exploration and Production; Midstream; and Marketing. The stock currently has a dividend yield of 3.2%. Currently there are 15 analysts that rate Anadarko Petroleum a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Recommends

The average volume for Anadarko Petroleum has been 8.3 million shares per day over the past 30 days. Anadarko has a market cap of $17.0 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.98 and a short float of 2.9% with 1.02 days to cover. Shares are down 27% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Anadarko Petroleum as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk.

Highlights from the ratings report include:

  • 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 305.6% when compared to the same quarter one year ago, falling from $1,087.00 million to -$2,235.00 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 Oil, Gas & Consumable Fuels industry and the overall market, ANADARKO PETROLEUM CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for ANADARKO PETROLEUM CORP is rather low; currently it is at 23.45%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -100.22% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to $1,127.00 million or 51.48% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The debt-to-equity ratio of 1.13 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, APC's quick ratio is somewhat strong at 1.02, demonstrating the ability to handle short-term liquidity needs.

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