Trade-Ideas LLC identified
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Tronox as such a stock due to the following factors:
- TROX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.1 million.
- TROX has traded 136,995 shares today.
- TROX is trading at 3.70 times the normal volume for the stock at this time of day.
- TROX is trading at a new high 5.30% 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 TROX:
Tronox Limited produces and markets titanium bearing mineral sands and titanium dioxide (TiO2) pigment in North America, Europe, South Africa, and the Asia-Pacific region. It primarily operates in two segments, Mineral Sands and Pigment. The stock currently has a dividend yield of 28.5%. Currently there are no analysts that rate Tronox a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Tronox has been 1.2 million shares per day over the past 30 days. Tronox has a market cap of $406.0 million and is part of the basic materials sector and chemicals industry. The stock has a beta of 3.06 and a short float of 17.8% with 12.37 days to cover. Shares are down 17.9% year-to-date as of the close of trading on Tuesday.
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rates Tronox as a
. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself and generally high debt management risk.
Highlights from the ratings report include:
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Chemicals industry and the overall market, TRONOX LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for TRONOX LTD is rather low; currently it is at 21.22%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -10.43% is significantly below that of the industry average.
- Net operating cash flow has decreased to $32.00 million or 40.74% 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.
- The debt-to-equity ratio is very high at 2.66 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, TROX's quick ratio is somewhat strong at 1.16, demonstrating the ability to handle short-term liquidity needs.
- TROX's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 84.09%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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 Tronox Ratings Report.