Trade-Ideas LLC identified

Kinder Morgan

(

KMI

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Kinder Morgan as such a stock due to the following factors:

  • KMI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $677.1 million.
  • KMI has traded 212,435 shares today.
  • KMI is up 7.1% today.
  • KMI was down 5% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in KMI with the Ticky from Trade-Ideas. See the FREE profile for KMI NOW at Trade-Ideas

More details on KMI:

Kinder Morgan, Inc. operates as an energy infrastructure and energy company in North America. The company operates through Natural Gas Pipelines, CO2, Terminals, Products Pipelines, Kinder Morgan Canada, and Other segments. The stock currently has a dividend yield of 3.5%. KMI has a PE ratio of 32. Currently there are 8 analysts that rate Kinder Morgan a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Kinder Morgan has been 44.2 million shares per day over the past 30 days. Kinder Morgan has a market cap of $31.7 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.99 and a short float of 3% with 1.29 days to cover. Shares are up 0.3% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Kinder Morgan as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, deteriorating net income, generally high debt management risk, disappointing return on equity and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 66.96%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 462.50% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, KMI is still more expensive than most of the other companies in its industry.
  • 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 584.9% when compared to the same quarter one year ago, falling from $126.00 million to -$611.00 million.
  • The debt-to-equity ratio of 1.23 is relatively high when compared with the industry average, suggesting a need for better debt level management.
  • 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 Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, KINDER MORGAN INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • KINDER MORGAN 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, KINDER MORGAN INC reported lower earnings of $0.14 versus $0.95 in the prior year. This year, the market expects an improvement in earnings ($0.73 versus $0.14).

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.