Trade-Ideas LLC identified

Williams Companies

(

WMB

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

  • WMB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $166.7 million.
  • WMB has traded 145,154 shares today.
  • WMB is up 3.5% today.
  • WMB was down 5.6% yesterday.

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

More details on WMB:

The Williams Companies, Inc. operates as an energy infrastructure company primarily in the United States. The company operates through Williams Partners, Williams NGL (natural gas liquids) & Petchem Services, and Other segments. The stock currently has a dividend yield of 14.4%. WMB has a PE ratio of 23. Currently there are 2 analysts that rate Williams Companies a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Williams Companies has been 16.7 million shares per day over the past 30 days. Williams Companies has a market cap of $13.2 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.55 and a short float of 3.6% with 2.57 days to cover. Shares are down 36.7% year-to-date as of the close of trading on Wednesday.

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 Williams Companies as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • 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 470.5% when compared to the same quarter one year ago, falling from $193.00 million to -$715.00 million.
  • The debt-to-equity ratio is very high at 3.98 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.46, which clearly demonstrates the inability to cover short-term cash needs.
  • 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 Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, WILLIAMS COS INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • Net operating cash flow has decreased to $592.00 million or 41.44% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, WILLIAMS COS INC has marginally lower results.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 66.87%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 465.38% 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.

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.