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.

Trade-Ideas LLC identified Triangle Petroleum ( TPLM) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Triangle Petroleum as such a stock due to the following factors:

  • TPLM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.7 million.
  • TPLM has traded 77,431 shares today.
  • TPLM is down 3.1% today.
  • TPLM was up 10.1% yesterday.

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More details on TPLM:

Triangle Petroleum Corporation engages in the acquisition, exploration, development, and production of unconventional shale oil and natural gas resources in the Bakken Shale and Three Forks formations in the Williston Basin of North Dakota and Montana. TPLM has a PE ratio of 37.8. Currently there are 6 analysts that rate Triangle Petroleum a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Triangle Petroleum has been 1.3 million shares per day over the past 30 days. Triangle has a market cap of $755.2 million and is part of the basic materials sector and energy industry. The stock has a beta of 3.26 and a short float of 22.4% with 5.57 days to cover. Shares are up 6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Triangle Petroleum as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from the ratings report include:
  • TPLM's very impressive revenue growth greatly exceeded the industry average of 7.6%. Since the same quarter one year prior, revenues leaped by 318.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • TRIANGLE PETROLEUM CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, TRIANGLE PETROLEUM CORP continued to lose money by earning -$0.30 versus -$0.78 in the prior year. This year, the market expects an improvement in earnings ($0.57 versus -$0.30).
  • TPLM's debt-to-equity ratio of 0.63 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that TPLM's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.64 is high and demonstrates strong liquidity.
  • Powered by its strong earnings growth of 2100.00% and other important driving factors, this stock has surged by 59.18% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • Net operating cash flow has decreased to -$15.69 million or 21.43% when compared to the same quarter last year. Despite a decrease in cash flow of 21.43%, TRIANGLE PETROLEUM CORP is in line with the industry average cash flow growth rate of -22.97%.

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

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