Strong On High Relative Volume: Costamare (CMRE)

Trade-Ideas LLC identified Costamare (CMRE) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Costamare

(

CMRE

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Costamare as such a stock due to the following factors:

  • CMRE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.2 million.
  • CMRE has traded 143,199 shares today.
  • CMRE is trading at 5.82 times the normal volume for the stock at this time of day.
  • CMRE is trading at a new high 3.02% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in CMRE with the Ticky from Trade-Ideas. See the FREE profile for CMRE NOW at Trade-Ideas

More details on CMRE:

Costamare Inc. owns and charters containerships to liner companies worldwide. The stock currently has a dividend yield of 15.1%. CMRE has a PE ratio of 5. Currently there are no analysts that rate Costamare a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Costamare has been 310,200 shares per day over the past 30 days. Costamare has a market cap of $577.6 million and is part of the services sector and transportation industry. The stock has a beta of 1.98 and a short float of 3.9% with 1.16 days to cover. Shares are down 33.3% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Costamare as a

hold

. The company's strengths can be seen in multiple areas, such as its notable return on equity, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself.

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 Marine industry. The net income increased by 33.1% when compared to the same quarter one year prior, rising from $26.28 million to $35.00 million.
  • 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 Marine industry and the overall market, COSTAMARE INC's return on equity exceeds that of both the industry average and the S&P 500.
  • Despite the weak revenue results, CMRE has outperformed against the industry average of 12.9%. Since the same quarter one year prior, revenues slightly dropped by 0.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • CMRE's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 58.25%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • Currently the debt-to-equity ratio of 1.55 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with this, the company manages to maintain a quick ratio of 0.36, which clearly demonstrates the inability to cover short-term cash needs.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

Loading ...