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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 or Stephanie Link.

Trade-Ideas LLC identified

Intrepid Potash

(

IPI

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

  • IPI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.3 million.
  • IPI has traded 1.2 million shares today.
  • IPI is up 3.3% today.
  • IPI was down 8.8% yesterday.

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More details on IPI:

Intrepid Potash, Inc. produces and markets muriate of potash and langbeinite under the Trio brand name primarily in the United States. IPI has a PE ratio of 49.4. Currently there are no analysts that rate Intrepid Potash a buy, 7 analysts rate it a sell, and 2 rate it a hold.

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The average volume for Intrepid Potash has been 749,400 shares per day over the past 30 days. Intrepid Potash has a market cap of $1.2 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.25 and a short float of 18.1% with 9.35 days to cover. Shares are down 3.4% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Intrepid Potash 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 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:

  • IPI's debt-to-equity ratio is very low at 0.16 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.30, which illustrates the ability to avoid short-term cash problems.
  • 39.80% is the gross profit margin for INTREPID POTASH INC which we consider to be strong. Regardless of IPI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.87% trails the industry average.
  • The revenue fell significantly faster than the industry average of 13.3%. Since the same quarter one year prior, revenues fell by 45.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • INTREPID POTASH 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 year. We anticipate that this should continue in the coming year. During the past fiscal year, INTREPID POTASH INC reported lower earnings of $1.15 versus $1.46 in the prior year. For the next year, the market is expecting a contraction of 62.6% in earnings ($0.43 versus $1.15).
  • 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 Chemicals industry. The net income has significantly decreased by 93.9% when compared to the same quarter one year ago, falling from $33.27 million to $2.03 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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