Trade-Ideas LLC identified Huntsman ( HUN) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Huntsman as such a stock due to the following factors:

  • HUN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $33.4 million.
  • HUN has traded 2.0 million shares today.
  • HUN is trading at 20.55 times the normal volume for the stock at this time of day.
  • HUN is trading at a new low 19.05% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on HUN:

Huntsman Corporation, together with its subsidiaries, manufactures and sells differentiated organic and inorganic chemical products worldwide. The company operates in five segments: Polyurethanes, Performance Products, Advanced Materials, Textile Effects, and Pigments and Additives. The stock currently has a dividend yield of 3.6%. HUN has a PE ratio of 18. Currently there are 5 analysts that rate Huntsman a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Huntsman has been 3.4 million shares per day over the past 30 days. Huntsman has a market cap of $3.4 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.88 and a short float of 5.7% with 3.92 days to cover. Shares are down 38.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Huntsman as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • Net operating cash flow has significantly increased by 194.00% to $147.00 million when compared to the same quarter last year. In addition, HUNTSMAN CORP has also vastly surpassed the industry average cash flow growth rate of -3.74%.
  • HUNTSMAN CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HUNTSMAN CORP increased its bottom line by earning $1.34 versus $0.54 in the prior year. This year, the market expects an improvement in earnings ($2.15 versus $1.34).
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Chemicals industry and the overall market, HUNTSMAN CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • 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 Chemicals industry. The net income has significantly decreased by 75.6% when compared to the same quarter one year ago, falling from $119.00 million to $29.00 million.

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