Taminco (TAM) Highlighted As Strong And Under The Radar Stock Of The Day

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 Taminco ( TAM) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Taminco as such a stock due to the following factors:

  • TAM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.8 million.
  • TAM is making at least a new 3-day high.
  • TAM has a PE ratio of 67.2.
  • TAM is mentioned 0.29 times per day on StockTwits.
  • TAM has not yet been mentioned on StockTwits today.
  • TAM is currently in the upper 20% of its 1-year range.
  • TAM is in the upper 35% of its 20-day range.
  • TAM is in the upper 45% of its 5-day range.
  • TAM is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on TAM:

Taminco Corporation, together with its subsidiaries, produces and distributes alkylamines and alkylamine derivatives in the United States, Belgium, and internationally. The company operates through three segments: Functional Amines, Specialty Amines, and Crop Protection. TAM has a PE ratio of 67.2. Currently there are 2 analysts that rate Taminco a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Taminco has been 216,300 shares per day over the past 30 days. Taminco has a market cap of $1.5 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.74 and a short float of 1.2% with 7.71 days to cover. Shares are up 13.5% year-to-date as of the close of trading on Friday.

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

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Taminco as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and poor profit margins.

Highlights from the ratings report include:
  • Currently the debt-to-equity ratio of 1.91 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with the unfavorable debt-to-equity ratio, TAM maintains a poor quick ratio of 0.88, which illustrates the inability to avoid short-term cash problems.
  • The gross profit margin for TAMINCO CORP is currently lower than what is desirable, coming in at 26.76%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 3.78% trails that of the industry average.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
  • Compared to other companies in the Chemicals industry and the overall market, TAMINCO CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 650.00% to $66.00 million when compared to the same quarter last year. In addition, TAMINCO CORP has also vastly surpassed the industry average cash flow growth rate of -15.43%.

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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