Triangle Petroleum (TPLM) Is Today's Dead Cat Bounce Stock

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 $21.2 million.
  • TPLM has traded 344,863 shares today.
  • TPLM is up 4.2% today.
  • TPLM was down 6.7% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in TPLM with the Ticky from Trade-Ideas. See the FREE profile for TPLM NOW at Trade-Ideas

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 6.5. Currently there are 6 analysts that rate Triangle Petroleum a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Triangle Petroleum has been 3.0 million shares per day over the past 30 days. Triangle has a market cap of $416.8 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.93 and a short float of 18.7% with 4.00 days to cover. Shares are down 26.1% year-to-date as of the close of trading on Tuesday.

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 Triangle Petroleum as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and a generally disappointing performance in the stock itself.

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 96.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • 47.57% is the gross profit margin for TRIANGLE PETROLEUM CORP which we consider to be strong. 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 14.58% compares favorably to the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 46.2% when compared to the same quarter one year ago, falling from $47.22 million to $25.40 million.
  • The debt-to-equity ratio of 1.27 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, TPLM maintains a poor quick ratio of 0.88, which illustrates the inability to avoid short-term cash problems.

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

null

More from Markets

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%