THT Heat Transfer Technology (THTI) Hits New One-Year High

NEW YORK (TheStreet) -- THT Heat Transfer Technology  (THTI) continued its upward surge from late last week and hit a new one-year high of $2.84 as of noon on Monday.

The stock had amassed a volume of nearly 3 million, more than 52 times its average of 55,179. The stock hit a low of $1.55 for the day and holds a one-year low of 77 cents.

THT Heat Transfer Technology soared more than 40% in morning trading on Monday.

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TheStreet Ratings team rates THT HEAT TRANSFER TECH INC as a "sell" with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate THT HEAT TRANSFER TECH INC (THTI) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • 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 Machinery industry and the overall market, THT HEAT TRANSFER TECH INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for THT HEAT TRANSFER TECH INC is currently lower than what is desirable, coming in at 33.20%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 5.06% trails that of the industry average.
  • THTI has underperformed the S&P 500 Index, declining 8.12% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • THT HEAT TRANSFER TECH INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, THT HEAT TRANSFER TECH INC reported lower earnings of $0.15 versus $0.39 in the prior year.
  • THTI's debt-to-equity ratio is very low at 0.29 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.72 is somewhat weak and could be cause for future problems.
  • You can view the full analysis from the report here: THTI Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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