Trade-Ideas LLC identified

Western Refining

(

WNR

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

  • WNR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $73.3 million.
  • WNR has traded 108,171 shares today.
  • WNR is up 4.1% today.
  • WNR was down 5.2% yesterday.

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

More details on WNR:

Western Refining, Inc. operates as an independent crude oil refiner and marketer of refined products. The company operates through four segments: Refining, NTI, WNRL, and Retail. The stock currently has a dividend yield of 6.9%. WNR has a PE ratio of 6. Currently there are 2 analysts that rate Western Refining a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Recommends

The average volume for Western Refining has been 2.7 million shares per day over the past 30 days. Western Refining has a market cap of $2.0 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.34 and a short float of 20.1% with 3.06 days to cover. Shares are down 38.4% year-to-date as of the close of trading on Friday.

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 Western Refining as a

hold

. Among the primary strengths of the company is its reasonable valuation levels, considering its current price compared to earnings, book value and other measures. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, weak operating cash flow and poor profit margins.

Highlights from the ratings report include:

  • WNR, with its decline in revenue, slightly underperformed the industry average of 32.0%. Since the same quarter one year prior, revenues fell by 37.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, WESTERN REFINING INC's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • Net operating cash flow has significantly decreased to $1.10 million or 98.94% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • WESTERN REFINING 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 year. We anticipate that this should continue in the coming year. During the past fiscal year, WESTERN REFINING INC reported lower earnings of $4.26 versus $5.61 in the prior year. For the next year, the market is expecting a contraction of 58.2% in earnings ($1.78 versus $4.26).

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.