Trade-Ideas LLC identified

Oil States International

(

OIS

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Oil States International as such a stock due to the following factors:

  • OIS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.9 million.
  • OIS has traded 434,127 shares today.
  • OIS traded in a range 207.1% of the normal price range with a price range of $2.96.
  • OIS traded above its daily resistance level (quality: 13 days, meaning that the stock is crossing a resistance level set by the last 13 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' 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 positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on OIS:

Oil States International, Inc., through its subsidiaries, provides specialty products and services to oil and natural gas companies worldwide. It operates through two segments, Offshore Products and Well Site Services. OIS has a PE ratio of 11. Currently there are 6 analysts that rate Oil States International a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Oil States International has been 1.2 million shares per day over the past 30 days. Oil States International has a market cap of $1.4 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.64 and a short float of 6.8% with 4.10 days to cover. Shares are down 41.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Oil States International as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including poor profit margins 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 Energy Equipment & Services industry. The net income increased by 178.5% when compared to the same quarter one year prior, rising from -$7.88 million to $6.18 million.
  • OIS's debt-to-equity ratio is very low at 0.12 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, OIS has a quick ratio of 1.96, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 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 Energy Equipment & Services industry and the overall market on the basis of return on equity, OIL STATES INTL INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • OIS'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 49.41%, 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. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • The gross profit margin for OIL STATES INTL INC is currently lower than what is desirable, coming in at 27.70%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.29% trails that of the industry average.

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