Water-Logged And Getting Wetter: Core Laboratories (CLB)
Trade-Ideas LLC identified
(
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) 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 $51.5 million.
- CLB has traded 350,831 shares today.
- CLB traded in a range 202.6% of the normal price range with a price range of $7.41.
- CLB traded below its daily resistance level (quality: 9 days, meaning that the stock is crossing a resistance level set by the last 9 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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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 1.8%. CLB has a PE ratio of 53. 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 517,900 shares per day over the past 30 days. Core has a market cap of $5.2 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.52 and a short float of 15.4% with 13.60 days to cover. Shares are up 13.9% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Core Laboratories as a
. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, poor profit margins and weak operating cash flow.
Highlights from the ratings report include:
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 35.8%. Since the same quarter one year prior, revenues fell by 28.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The change in net income from the same quarter one year ago has significantly 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 52.0% when compared to the same quarter one year ago, falling from $31.40 million to $15.08 million.
- Net operating cash flow has decreased to $46.10 million or 42.07% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, CORE LABORATORIES NV has marginally lower results.
- CORE LABORATORIES NV has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, CORE LABORATORIES NV reported lower earnings of $2.67 versus $5.78 in the prior year. For the next year, the market is expecting a contraction of 40.4% in earnings ($1.59 versus $2.67).
- You can view the full Core Laboratories Ratings Report.
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