Trade-Ideas LLC identified

Williams Companies

(

WMB

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

  • WMB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $325.1 million.
  • WMB has traded 98,430 shares today.
  • WMB is up 3.1% today.
  • WMB was down 6.1% yesterday.

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More details on WMB:

The Williams Companies, Inc. operates as an energy infrastructure company primarily in the United States. The company operates through Williams Partners, Williams NGL (natural gas liquids) & Petchem Services, and Other segments. The stock currently has a dividend yield of 11.8%. WMB has a PE ratio of 38. Currently there are 3 analysts that rate Williams Companies a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Williams Companies has been 11.3 million shares per day over the past 30 days. Williams Companies has a market cap of $16.3 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.48 and a short float of 3.5% with 1.45 days to cover. Shares are down 17.1% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Williams Companies as a

hold

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

Highlights from the ratings report include:

  • Net operating cash flow has increased to $779.00 million or 16.44% when compared to the same quarter last year. In addition, WILLIAMS COS INC has also vastly surpassed the industry average cash flow growth rate of -49.84%.
  • The gross profit margin for WILLIAMS COS INC is rather high; currently it is at 57.29%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -3.91% trails the industry average.
  • Despite the weak revenue results, WMB has outperformed against the industry average of 24.6%. Since the same quarter one year prior, revenues slightly dropped by 3.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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 192.8% when compared to the same quarter one year ago, falling from $70.00 million to -$65.00 million.
  • The debt-to-equity ratio is very high at 4.36 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.32, which clearly demonstrates the inability to cover short-term cash needs.

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