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
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Chemtura as such a stock due to the following factors:
- CHMT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.0 million.
- CHMT has traded 206,731 shares today.
- CHMT is trading at 8.85 times the normal volume for the stock at this time of day.
- CHMT is trading at a new low 9.03% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on CHMT:
Chemtura Corporation, together with its subsidiaries, develops, manufactures, and markets performance-driven engineered specialty chemicals primarily for industrial manufacturing customers. CHMT has a PE ratio of 99.1. Currently there are 3 analysts that rate Chemtura a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for Chemtura has been 809,800 shares per day over the past 30 days. Chemtura has a market cap of $2.1 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 2.15 and a short float of 9.7% with 9.67 days to cover. Shares are down 15.9% year-to-date as of the close of trading on Tuesday.
rates Chemtura as a
. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and poor profit margins.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 141.9% when compared to the same quarter one year prior, rising from -$93.00 million to $39.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 8.0%. Since the same quarter one year prior, revenues slightly increased by 3.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CHEMTURA CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CHEMTURA CORP swung to a loss, reporting -$0.23 versus $1.03 in the prior year. This year, the market expects an improvement in earnings ($1.03 versus -$0.23).
- CHMT has underperformed the S&P 500 Index, declining 6.68% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- 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 Chemicals industry and the overall market, CHEMTURA CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Chemtura Ratings Report.