EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

Reprint Email

TheStreet Wire

Advantage Oil & Gas Ltd Stock Downgraded (AAV)

By TheStreet Wire 05/17/11 - 06:56 AM EDT

Find out if (AAV) is in Cramer's Portfolio.

NEW YORK (TheStreet) -- Advantage Oil & Gas (NYSE:AAV) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and weak operating cash flow.

Highlights from the ratings report include:

The revenue fell significantly faster than the industry average of 24.2%. Since the same quarter one year prior, revenues fell by 39.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
The gross profit margin for ADVANTAGE OIL & GAS LTD is rather high; currently it is at 67.00%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, AAV's net profit margin of -8.40% significantly underperformed when compared to the industry average.
The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ADVANTAGE OIL & GAS LTD's return on equity significantly trails that of both the industry average and the S&P 500.
Net operating cash flow has decreased to $24.58 million or 49.97% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
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 143.4% when compared to the same quarter one year ago, falling from $13.16 million to -$5.71 million.

Advantage Oil & Gas Ltd. engages in the business of oil and gas exploitation, development, acquisition, and production in the provinces of Alberta and Saskatchewan, Canada. Advantage Oil & Gas has a market cap of $1.3 billion and is part of the basic materials sector and energy industry. Shares are up 14.3% year to date as of the close of trading on Monday.

You can view the full Advantage Oil & Gas Ratings Report or get investment ideas from our investment research center.

For more information on Advantage Oil & Gas Ltd. click any of the following:

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:

$2.5+ million portfolio
Large-cap and dividend focus
Intraday trade alerts from Cramer
Weekly roundups

Dividend Stock Advisor

TRY IT FREE

New! $49.95/yr

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:

Diversified model portfolio of dividend stocks
Alerts when market news affect the portfolio
Bi-weekly updates with exact steps to take - BUY, HOLD, SELL

Stocks Under $10

TRY IT FREE

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:

Model portfolio
Stocks trading below $10
Intraday trade alerts
Weekly roundups

Real Money

TRY IT FREE

24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.

Product Features:

Jim Cramer + 20 Wall Street pros
Intraday commentary & news
Real-time trading forum
Actionable trade ideas

Real Money Pro

TRY IT FREE

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:

Real Money + Doug Kass + 15 more Wall Street Pros
Intraday commentary & news
Ultra-actionable trading ideas

Options Profits

TRY IT FREE

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.