Trade-Ideas LLC identified

Chart Industries

(

GTLS

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

  • GTLS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.9 million.
  • GTLS has traded 108,251 shares today.
  • GTLS is trading at 7.34 times the normal volume for the stock at this time of day.
  • GTLS is trading at a new low 12.05% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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.

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More details on GTLS:

Chart Industries, Inc. manufactures and sells engineered equipment for the industrial gas, energy, and biomedical industries worldwide. The company operates in three segments: Energy & Chemicals (E&C), Distribution & Storage (D&S), and BioMedical. GTLS has a PE ratio of 8. Currently there are 8 analysts that rate Chart Industries a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Chart Industries has been 573,400 shares per day over the past 30 days. Chart has a market cap of $610.0 million and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.19 and a short float of 7.2% with 3.77 days to cover. Shares are down 42% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Chart Industries as a

hold

. The company's strengths can be seen in multiple areas, such as its 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 disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • GTLS's debt-to-equity ratio is very low at 0.25 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.27, which illustrates the ability to avoid short-term cash problems.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 14.2%. Since the same quarter one year prior, revenues fell by 11.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Net operating cash flow has significantly decreased to $7.12 million or 66.86% 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's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Machinery industry and the overall market, CHART INDUSTRIES INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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