Shares of Memorial Production Partners LP (NASDAQ:MEMP) continue to trend down as the stock moved -12.14% and recently hit a new 52-week low.  The stock has been facing some pressure as of late, as the company has been feeling the heat from their major competitors and other factors. This has caused investors to take a long hard look at the stock, at least for the moment. 

When a stock falls like this, it is important for investors to gather as much information as possible in order to determine what moves, if any, they should make.  For example, It is always a good idea to compare the performance of an individual stock to that of the overall stock market.  How healthy is the market?  Industry cycles should be considered.  How is the company’s industry doing?  Firm-specific information should be analyzed.  Is  there changes in ownership?  Was there an unexpected or sudden change in management?  Etc.  The biggest issue that investors face is that they become too emotionally involved when deciding whether it’s time to sell.  They lose all objectivity.  Unfortunately, there are no simple, automatic rules to follow that effective for when to sell a stock.

Recent Performance and EPS

How has the stock been performing up to this point? Memorial Production Partners LP (NASDAQ:MEMP)’s stock is trading at -85.85% for the year.  As we look closer, it has performed -8.42% for the week, -73.64% for the month, -81.09% over the last quarter, -83.06% for the past half-year and -90.09% for the last year.  Investors will notice a distinct trend, in hindsight.

Earnings Per Share is a portion of a company’s profit distributed to each share.  EPS is a valuable indicator of a company’s profitability.  It is considered to be the single most important thing when determining the price of a share. Memorial Production Partners LP’s EPS growth is -383.40% for the year and their trailing 12-month EPS is -1.75.  Wall Street is estimating Memorial Production Partners LP’s growth for next year as 89.10%.

Returns and Recommendations

Memorial Production Partners LP (NASDAQ:MEMP)’s Return on Assets (ROA) of -5.40% is an indicator of how profitable they are relative to their total assets.  ROA lets us know how efficient management is.  ROA is calculated by dividing annual earnings by total assets. NASDAQ:MEMP’s Return on Equity (ROE) is -27.40%, revealing how much profit they generate with shareholder’s money.  ROE is calculated by dividing net income by shareholder’s equity.  The firm’s Return on Investment [ROI], a measure used to evaluate the stock’s efficiency, calculated by the return of an investment divided by the cost, is -10.60%.  The consensus analysts recommendation at this point stands at 3.60 on this stock.  This is based on a 1-5 scale where 1 indicates a Strong Buy and 5 a Strong Sell. 

Disclaimer: The views, opinions, and information expressed in this article are those of the authors and do not necessarily reflect the official policy or position of any company stakeholders, financial professionals, or analysts. Examples of analysis performed within this article are only examples. They should not be utilized to make stock portfolio or financial decisions as they are based only on limited and open source information. Assumptions made within the analysis are not reflective of the position of any analysts or financial professionals.

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