Trade-Ideas LLC identified

Laredo Petroleum

(

LPI

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

  • LPI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.5 million.
  • LPI has traded 58,374 shares today.
  • LPI is up 7.5% today.
  • LPI was down 7.8% yesterday.

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More details on LPI:

Laredo Petroleum, Inc. operates as an independent energy company in the United States. It focuses on the acquisition, exploration, and development of oil and natural gas properties primarily in the Permian Basin in west Texas. Currently there are 7 analysts that rate Laredo Petroleum a buy, 1 analyst rates it a sell, and 10 rate it a hold.

TheStreet Recommends

The average volume for Laredo Petroleum has been 3.0 million shares per day over the past 30 days. Laredo has a market cap of $2.2 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.45 and a short float of 19.7% with 10.19 days to cover. Shares are down 10.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Laredo Petroleum as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 58.54%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1346.15% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, LPI is still more expensive than most of the other companies in its industry.
  • 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 2000.8% when compared to the same quarter one year ago, falling from -$18.90 million to -$397.03 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, LAREDO PETROLEUM INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $87.44 million or 21.91% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, LAREDO PETROLEUM INC has marginally lower results.
  • LAREDO PETROLEUM 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, LAREDO PETROLEUM INC increased its bottom line by earning $1.85 versus $0.85 in the prior year. For the next year, the market is expecting a contraction of 90.3% in earnings ($0.18 versus $1.85).

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