Core Laboratories (CLB) Showing Signs Of Being A Roof Leaker
Trade-Ideas LLC identified
(
) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Core Laboratories as such a stock due to the following factors:
- CLB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $54.2 million.
- CLB has traded 72,534 shares today.
- CLB is trading at 3.00 times the normal volume for the stock at this time of day.
- CLB crossed below its 200-day simple moving average.
'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.
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More details on CLB:
Core Laboratories N.V. provides reservoir description, production enhancement, and reservoir management services to the oil and gas industry in the United States, Canada, and internationally. The stock currently has a dividend yield of 1.9%. CLB has a PE ratio of 31. Currently there are 5 analysts that rate Core Laboratories a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Core Laboratories has been 673,400 shares per day over the past 30 days. Core has a market cap of $4.9 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.60 and a short float of 16.8% with 13.44 days to cover. Shares are down 1.9% year-to-date as of the close of trading on Monday.
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Analysis:
rates Core Laboratories as a
. The company's strongest point has been its expanding profit margins. At the same time, however, we also find weaknesses including weak operating cash flow, deteriorating net income and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 30.8%. Since the same quarter one year prior, revenues fell by 28.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- CORE LABORATORIES NV's earnings per share declined by 48.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, CORE LABORATORIES NV increased its bottom line by earning $5.78 versus $5.28 in the prior year. For the next year, the market is expecting a contraction of 45.3% in earnings ($3.16 versus $5.78).
- The change in net income from the same quarter one year ago has exceeded that of the Energy Equipment & Services industry average, but is less than that of the S&P 500. The net income has significantly decreased by 49.8% when compared to the same quarter one year ago, falling from $66.50 million to $33.40 million.
- The gross profit margin for CORE LABORATORIES NV is currently lower than what is desirable, coming in at 34.58%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 16.93% is above that of the industry average.
- Net operating cash flow has decreased to $43.48 million or 41.58% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full Core Laboratories Ratings Report.
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