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 "dead cat bounce" (down big yesterday but up 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 $16.0 million.
  • TPLM has traded 51,131 shares today.
  • TPLM is up 3.5% today.
  • TPLM was down 6.2% yesterday.

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More details on TPLM:

Triangle Petroleum Corporation is engaged 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 6.2. 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 1.8 million shares per day over the past 30 days. Triangle has a market cap of $618.4 million and is part of the basic materials sector and energy industry. The stock has a beta of 2.07 and a short float of 21.2% with 5.50 days to cover. Shares are down 12.9% 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 buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, reasonable valuation levels, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • TPLM's very impressive revenue growth greatly exceeded the industry average of 6.7%. Since the same quarter one year prior, revenues leaped by 181.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 114.0% when compared to the same quarter one year prior, rising from $6.80 million to $14.55 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength 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, TRIANGLE PETROLEUM CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • The gross profit margin for TRIANGLE PETROLEUM CORP is rather high; currently it is at 55.87%. Regardless of TPLM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TPLM's net profit margin of 10.24% compares favorably to the industry average.

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