Trade-Ideas LLC identified Tim Participacoes ( TSU) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Tim Participacoes as such a stock due to the following factors:

  • TSU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.3 million.
  • TSU has traded 57,303 shares today.
  • TSU is down 3% today.
  • TSU was up 5.8% yesterday.

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More details on TSU:

TIM Participacoes S.A., through its subsidiaries, provides mobile telecommunication services for residential and business customers in Brazil. The company offers mobile, fixed, and long distance telephony; data transmission; and broadband services. The stock currently has a dividend yield of 2.1%. TSU has a PE ratio of 7. Currently there is 1 analyst that rates Tim Participacoes a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Tim Participacoes has been 1.8 million shares per day over the past 30 days. Tim Participacoes has a market cap of $4.9 billion and is part of the technology sector and telecommunications industry. Shares are down 53.5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Tim Participacoes as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, weak operating cash flow and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Wireless Telecommunication Services industry. The net income increased by 76.7% when compared to the same quarter one year prior, rising from $169.87 million to $300.15 million.
  • The current debt-to-equity ratio, 0.49, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.32, which illustrates the ability to avoid short-term cash problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Wireless Telecommunication Services industry and the overall market on the basis of return on equity, TIM PARTICIPACOES SA has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • TSU's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 56.40%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • Net operating cash flow has decreased to $400.42 million or 47.14% when compared to the same quarter last year. Despite a decrease in cash flow of 47.14%, TIM PARTICIPACOES SA is in line with the industry average cash flow growth rate of -54.84%.

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