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Trade-Ideas LLC identified

CVR Refining

(

CVRR

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified CVR Refining as such a stock due to the following factors:

  • CVRR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.8 million.
  • CVRR has traded 102,448 shares today.
  • CVRR is trading at 2.83 times the normal volume for the stock at this time of day.
  • CVRR is trading at a new low 3.07% 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 CVRR:

TheStreet Recommends

CVR Refining, LP operates as an independent petroleum refiner and marketer of transportation fuels in the United States. It owns and operates a complex full coking medium-sour crude oil refinery in Coffeyville, Kansas. The stock currently has a dividend yield of 39%. CVRR has a PE ratio of 9. Currently there is 1 analyst that rates CVR Refining a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for CVR Refining has been 416,200 shares per day over the past 30 days. CVR Refining has a market cap of $1.4 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.19 and a short float of 5.4% with 3.76 days to cover. Shares are down 53.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates CVR Refining as a

sell

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

Highlights from the ratings report include:

  • CVR REFINING LP 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 two years. We anticipate that this should continue in the coming year. During the past fiscal year, CVR REFINING LP reported lower earnings of $1.97 versus $2.44 in the prior year. For the next year, the market is expecting a contraction of 38.6% in earnings ($1.21 versus $1.97).
  • 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 245.6% when compared to the same quarter one year ago, falling from $46.70 million to -$68.00 million.
  • The gross profit margin for CVR REFINING LP is currently extremely low, coming in at 2.81%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -8.15% trails that of the industry average.
  • Net operating cash flow has significantly decreased to $3.00 million or 97.97% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 45.23%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 243.75% compared to 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.

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