Trade-Ideas LLC identified Greif ( GEF) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Greif as such a stock due to the following factors:

  • GEF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.3 million.
  • GEF has traded 307,726 shares today.
  • GEF is up 3.1% today.
  • GEF was down 9% yesterday.

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More details on GEF:

Greif, Inc. produces and sells industrial packaging products worldwide. The stock currently has a dividend yield of 5.7%. GEF has a PE ratio of 56. Currently there are 3 analysts that rate Greif a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Greif has been 320,800 shares per day over the past 30 days. Greif has a market cap of $1.4 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.09 and a short float of 2.3% with 5.91 days to cover. Shares are down 13.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Greif as a hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. 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 56.26% to -$26.20 million when compared to the same quarter last year. In addition, GREIF INC has also vastly surpassed the industry average cash flow growth rate of -6.07%.
  • GEF, with its decline in revenue, slightly underperformed the industry average of 10.8%. Since the same quarter one year prior, revenues fell by 14.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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 Containers & Packaging industry. The net income has significantly decreased by 136.9% when compared to the same quarter one year ago, falling from $30.10 million to -$11.10 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Containers & Packaging industry and the overall market, GREIF INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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