Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Trinseo as such a stock due to the following factors:
- TSE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.4 million.
- TSE has traded 113,346 shares today.
- TSE is trading at 19.64 times the normal volume for the stock at this time of day.
- TSE is trading at a new low 9.07% 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 TSE:
Trinseo S.A., a materials company, manufactures and markets various emulsion polymers and plastics. It operates through four segments: Latex, Synthetic Rubber, Performance Plastics, and Basic Plastics and Feedstocks. Currently there are 3 analysts that rate Trinseo a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Trinseo has been 252,300 shares per day over the past 30 days. Trinseo has a market cap of $1.6 billion and is part of the consumer goods sector and consumer non-durables industry. Shares are up 77.5% year-to-date as of the close of trading on Wednesday.
rates Trinseo as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including poor profit margins and generally higher debt management risk.
Highlights from the ratings report include:
- Powered by its strong earnings growth of 102.12% and other important driving factors, this stock has surged by 129.19% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 101.7% when compared to the same quarter one year prior, rising from -$44.62 million to $0.76 million.
- TRINSEO SA reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TRINSEO SA reported poor results of -$1.40 versus -$0.47 in the prior year. This year, the market expects an improvement in earnings ($4.79 versus -$1.40).
- The debt-to-equity ratio is very high at 4.24 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, TSE has managed to keep a strong quick ratio of 1.59, which demonstrates the ability to cover short-term cash needs.
- The gross profit margin for TRINSEO SA is rather low; currently it is at 15.93%. Regardless of TSE's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, TSE's net profit margin of 0.07% is significantly lower than the industry average.
- You can view the full Trinseo Ratings Report.