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.

Trade-Ideas LLC identified Memorial Production Partners ( MEMP) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Memorial Production Partners as such a stock due to the following factors:

  • MEMP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.4 million.
  • MEMP traded 111,200 shares today in the pre-market hours as of 7:59 AM, representing 19.4% of its average daily volume.

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More details on MEMP:

Memorial Production Partners LP, through its subsidiary, engages in the acquisition, development, exploitation, and production of oil and natural gas properties. The stock currently has a dividend yield of 12.9%. MEMP has a PE ratio of 10.3. Currently there are 7 analysts that rate Memorial Production Partners a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Memorial Production Partners has been 809,200 shares per day over the past 30 days. Memorial Production has a market cap of $1.4 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.36 and a short float of 4.7% with 6.28 days to cover. Shares are up 20.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Memorial Production Partners 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 also find weaknesses including generally higher debt management risk, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 19.8%. Since the same quarter one year prior, revenues rose by 33.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • MEMORIAL PRODUCTION PRTRS LP 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, MEMORIAL PRODUCTION PRTRS LP increased its bottom line by earning $0.85 versus $0.11 in the prior year. This year, the market expects an improvement in earnings ($0.88 versus $0.85).
  • Net operating cash flow has significantly decreased to $41.12 million or 50.07% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The debt-to-equity ratio of 1.49 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, MEMP has a quick ratio of 0.55, this demonstrates the lack of ability of the company to cover short-term liquidity needs.

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