Today's Dead Cat Bounce Stock: Hi-Crush Partners (HCLP)

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

  • HCLP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $35.3 million.
  • HCLP has traded 58,177 shares today.
  • HCLP is up 3.3% today.
  • HCLP was down 9.4% yesterday.

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More details on HCLP:

Hi-Crush Partners LP operates as a producer and supplier of monocrystalline sand. Monocrystalline sand is a mineral that is used as a proppant to enhance the recovery rates of hydrocarbons from oil and natural gas wells. The stock currently has a dividend yield of 3.7%. HCLP has a PE ratio of 25.8. Currently there are 7 analysts that rate Hi-Crush Partners a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Hi-Crush Partners has been 522,900 shares per day over the past 30 days. Hi-Crush has a market cap of $1.2 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 1.91 and a short float of 4.6% with 0.51 days to cover. Shares are up 56.1% year-to-date as of the close of trading on Monday.

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 Hi-Crush Partners as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and solid stock price performance. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Highlights from the ratings report include:
  • HCLP's very impressive revenue growth greatly exceeded the industry average of 0.6%. Since the same quarter one year prior, revenues leaped by 120.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 55.76% and other important driving factors, this stock has surged by 142.17% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • The gross profit margin for HI-CRUSH PARTNERS LP is rather high; currently it is at 50.38%. Regardless of HCLP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, HCLP's net profit margin of 35.71% significantly outperformed against the industry.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Metals & Mining industry average, but is greater than that of the S&P 500. The net income increased by 105.6% when compared to the same quarter one year prior, rising from $14.37 million to $29.54 million.
  • The debt-to-equity ratio of 1.36 is relatively high when compared with the industry average, suggesting a need for better debt level management. Regardless of the company's weak debt-to-equity ratio, HCLP has managed to keep a strong quick ratio of 2.43, which demonstrates the ability to cover short-term cash needs.

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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