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 $38.4 million.
  • HUN has traded 615,712 shares today.
  • HUN is trading at 7.78 times the normal volume for the stock at this time of day.
  • HUN is trading at a new low 8.02% 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 3.1%. HUN has a PE ratio of 28. Currently there are 2 analysts that rate Huntsman a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Huntsman has been 3.3 million shares per day over the past 30 days. Huntsman has a market cap of $3.9 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 2.94 and a short float of 4.3% with 2.84 days to cover. Shares are up 27.1% 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 buy. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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 Chemicals industry. The net income increased by 1020.0% when compared to the same quarter one year prior, rising from $5.00 million to $56.00 million.
  • Net operating cash flow has significantly increased by 158.82% to $88.00 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 -20.96%.
  • HUNTSMAN CORP reported significant earnings per share improvement in the most recent quarter compared to 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 reported lower earnings of $0.40 versus $1.34 in the prior year. This year, the market expects an improvement in earnings ($1.80 versus $0.40).
  • HUN, with its decline in revenue, slightly underperformed the industry average of 7.2%. Since the same quarter one year prior, revenues slightly dropped by 9.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for HUNTSMAN CORP is rather low; currently it is at 21.91%. Regardless of HUN's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.37% trails the industry average.

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