Trade-Ideas: Calumet Specialty Products Partners (CLMT) Is Today's Weak On High Relative Volume Stock
Trade-Ideas LLC identified Calumet Specialty Products Partners ( CLMT) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Calumet Specialty Products Partners as such a stock due to the following factors:
- CLMT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.7 million.
- CLMT has traded 182,468 shares today.
- CLMT is trading at 2.36 times the normal volume for the stock at this time of day.
- CLMT is trading at a new low 6.09% 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 CLMT: Calumet Specialty Products Partners, L.P. produces and sells specialty hydrocarbon products in North America. It operates in three segments: Specialty Products, Fuel Products, and Oilfield Services. The stock currently has a dividend yield of 58%. Currently there is 1 analyst that rates Calumet Specialty Products Partners a buy, 4 analysts rate it a sell, and 6 rate it a hold. The average volume for Calumet Specialty Products Partners has been 940,700 shares per day over the past 30 days. Calumet Specialty has a market cap of $377.1 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.10 and a short float of 2.7% with 0.59 days to cover. Shares are down 75.9% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Calumet Specialty Products Partners as a
. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself. Highlights from the ratings report include:
- The debt-to-equity ratio is very high at 2.94 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 0.35, which clearly demonstrates the inability to cover short-term cash needs.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CALUMET SPECIALTY PRODS -LP's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for CALUMET SPECIALTY PRODS -LP is currently extremely low, coming in at 7.78%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -13.00% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to $80.30 million or 52.28% 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 82.81%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 64.21% 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.
- You can view the full Calumet Specialty Products Partners Ratings Report.
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