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

  • AIRM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.6 million.
  • AIRM has traded 72,586 shares today.
  • AIRM is down 3.1% today.
  • AIRM was up 5.1% yesterday.

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More details on AIRM:

Air Methods Corporation, together with its subsidiaries, provides air medical emergency transport services and systems in the United States. The company operates in the Air Medical Services (AMS), Tourism, and United Rotorcraft (UR) segments. AIRM has a PE ratio of 16. Currently there are 4 analysts that rate Air Methods a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Air Methods has been 336,800 shares per day over the past 30 days. Air Methods has a market cap of $1.6 billion and is part of the services sector and transportation industry. The stock has a beta of 1.79 and a short float of 35.8% with 21.77 days to cover. Shares are down 2.5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Air Methods as a hold. The company's strengths can be seen in multiple areas, such as its 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:
  • AIRM's revenue growth has slightly outpaced the industry average of 9.1%. Since the same quarter one year prior, revenues rose by 12.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • AIR METHODS CORP has improved earnings per share by 26.1% 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, AIR METHODS CORP increased its bottom line by earning $2.55 versus $1.54 in the prior year. This year, the market expects an improvement in earnings ($2.65 versus $2.55).
  • Net operating cash flow has significantly decreased to $17.05 million or 60.47% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The debt-to-equity ratio of 1.21 is relatively high when compared with the industry average, suggesting a need for better debt level management.

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