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

  • BBG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.4 million.
  • BBG has traded 61,543 shares today.
  • BBG is down 3.7% today.
  • BBG was up 7.7% yesterday.

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More details on BBG:

Bill Barrett Corporation, an independent energy company, acquires, explores for, and develops oil and natural gas resources in the United States. Currently there are 6 analysts that rate Bill Barrett Corporation a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for Bill Barrett Corporation has been 1.9 million shares per day over the past 30 days. Bill Barrett has a market cap of $423.3 million and is part of the basic materials sector and energy industry. The stock has a beta of 3.76 and a short float of 30.5% with 5.87 days to cover. Shares are up 120.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Bill Barrett Corporation as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally high debt management risk and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • 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 Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 123.7% when compared to the same quarter one year ago, falling from $89.07 million to -$21.15 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, BILL BARRETT CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The debt-to-equity ratio of 1.46 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, BBG's quick ratio is somewhat strong at 1.19, demonstrating the ability to handle short-term liquidity needs.
  • Net operating cash flow has declined marginally to $27.78 million or 8.67% when compared to the same quarter last year. Despite a decrease in cash flow BILL BARRETT CORP is still fairing well by exceeding its industry average cash flow growth rate of -38.88%.
  • The share price of BILL BARRETT CORP has not done very well: it is down 23.51% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier 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.

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