Trade-Ideas LLC identified TC Pipelines ( TCP) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified TC Pipelines as such a stock due to the following factors:

  • TCP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.7 million.
  • TCP has traded 307,097 shares today.
  • TCP is trading at 2.42 times the normal volume for the stock at this time of day.
  • TCP is trading at a new low 3.04% 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 TCP:

TC PipeLines, LP acquires, owns, and participates in the management of energy infrastructure businesses in North America. The stock currently has a dividend yield of 6.4%. TCP has a PE ratio of 292. Currently there is 1 analyst that rates TC Pipelines a buy, 2 analysts rate it a sell, and 3 rate it a hold.

The average volume for TC Pipelines has been 164,300 shares per day over the past 30 days. TC Pipelines has a market cap of $3.7 billion and is part of the basic materials sector and energy industry. Shares are up 7.7% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates TC Pipelines as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins, good cash flow from operations, growth in earnings per share and increase in stock price during the past year. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

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 Oil, Gas & Consumable Fuels industry. The net income increased by 28.1% when compared to the same quarter one year prior, rising from $57.00 million to $73.00 million.
  • The gross profit margin for TC PIPELINES LP is currently very high, coming in at 82.56%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 84.88% significantly outperformed against the industry average.
  • Net operating cash flow has slightly increased to $92.00 million or 5.74% when compared to the same quarter last year. In addition, TC PIPELINES LP has also vastly surpassed the industry average cash flow growth rate of -49.95%.
  • TC PIPELINES LP has improved earnings per share by 25.0% 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, TC PIPELINES LP reported lower earnings of $0.00 versus $2.67 in the prior year. This year, the market expects an increase in earnings to $3.12 from $0.00.
  • Despite the weak revenue results, TCP has outperformed against the industry average of 24.1%. Since the same quarter one year prior, revenues slightly dropped by 1.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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