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

Clean Energy Fuels

(

CLNE

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

  • CLNE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.4 million.
  • CLNE has traded 100,717 shares today.
  • CLNE is up 7.2% today.
  • CLNE was down 5.4% yesterday.

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More details on CLNE:

Clean Energy Fuels Corp. provides natural gas as an alternative fuel for vehicle fleets in the United States and Canada. Currently there are 2 analysts that rate Clean Energy Fuels a buy, 2 analysts rate it a sell, and 4 rate it a hold.

The average volume for Clean Energy Fuels has been 2.2 million shares per day over the past 30 days. Clean Energy has a market cap of $547.6 million and is part of the utilities sector and utilities industry. The stock has a beta of 2.09 and a short float of 24.7% with 7.88 days to cover. Shares are up 18.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Clean Energy Fuels as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, disappointing return on equity, poor profit margins, generally high debt management risk and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • CLEAN ENERGY FUELS CORP's earnings per share declined by 13.3% in the most recent quarter compared to 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, CLEAN ENERGY FUELS CORP reported poor results of -$0.95 versus -$0.71 in the prior year. For the next year, the market is expecting a contraction of 12.6% in earnings (-$1.07 versus -$0.95).
  • 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 Oil, Gas & Consumable Fuels industry and the overall market, CLEAN ENERGY FUELS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CLEAN ENERGY FUELS CORP is rather low; currently it is at 24.60%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -36.28% is significantly below that of the industry average.
  • Looking at the price performance of CLNE's shares over the past 12 months, there is not much good news to report: the stock is down 42.88%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The debt-to-equity ratio of 1.44 is relatively high when compared with the industry average, suggesting a need for better debt level management. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 2.84, which shows the ability to cover short-term cash needs.

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