Trade-Ideas LLC identified

HollyFrontier

(

HFC

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

  • HFC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $93.3 million.
  • HFC has traded 302,677 shares today.
  • HFC is trading at 2.07 times the normal volume for the stock at this time of day.
  • HFC is trading at a new low 4.01% 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 HFC:

HollyFrontier Corporation operates as an independent petroleum refiner in the United States. The company operates in two segments, Refining and HEP. The stock currently has a dividend yield of 5.5%. HFC has a PE ratio of 8. Currently there are 5 analysts that rate HollyFrontier a buy, 2 analysts rate it a sell, and 5 rate it a hold.

The average volume for HollyFrontier has been 3.1 million shares per day over the past 30 days. HollyFrontier has a market cap of $4.2 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.15 and a short float of 7.1% with 3.18 days to cover. Shares are down 39.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates HollyFrontier as a

hold

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • HFC's debt-to-equity ratio is very low at 0.26 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that HFC's debt-to-equity ratio is low, the quick ratio, which is currently 0.65, displays a potential problem in covering short-term cash needs.
  • The gross profit margin for HOLLYFRONTIER CORP is currently extremely low, coming in at 9.76%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.05% trails that of the industry average.
  • Net operating cash flow has significantly decreased to $6.64 million or 97.31% 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.

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