Trade-Ideas LLC identified

Intrepid Potash

(

IPI

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

  • IPI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.9 million.
  • IPI has traded 117,647 shares today.
  • IPI is trading at 2.73 times the normal volume for the stock at this time of day.
  • IPI is trading at a new high 5.18% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 IPI:

Intrepid Potash, Inc. engages in the extraction, production, and sale of potassium containing products in the United States. It produces muriate of potash and langbeinite, a low-chloride potassium fertilizer with the additional benefits of sulfate and magnesium. Currently there are no analysts that rate Intrepid Potash a buy, 3 analysts rate it a sell, and 3 rate it a hold.

The average volume for Intrepid Potash has been 1.4 million shares per day over the past 30 days. Intrepid Potash has a market cap of $201.8 million and is part of the basic materials sector and chemicals industry. The stock has a beta of 0.10 and a short float of 13.3% with 6.26 days to cover. Shares are down 77.7% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Intrepid Potash 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:

  • INTREPID POTASH INC 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, INTREPID POTASH INC reported lower earnings of $0.13 versus $0.30 in the prior year. For the next year, the market is expecting a contraction of 203.8% in earnings (-$0.14 versus $0.13).
  • 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 Chemicals industry. The net income has significantly decreased by 555.6% when compared to the same quarter one year ago, falling from -$1.24 million to -$8.11 million.
  • The gross profit margin for INTREPID POTASH INC is rather low; currently it is at 21.58%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -15.10% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$11.60 million or 123.68% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much 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 78.20%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 450.00% 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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