Trade-Ideas LLC identified

Costamare

(

CMRE

) as a weak 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 $4.2 million.
  • CMRE has traded 70,492 shares today.
  • CMRE is trading at 3.12 times the normal volume for the stock at this time of day.
  • CMRE is trading at a new low 3.06% 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 CMRE:

Costamare Inc. owns and charters containerships to liner companies worldwide. The stock currently has a dividend yield of 11.7%. CMRE has a PE ratio of 6. 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 367,400 shares per day over the past 30 days. Costamare has a market cap of $744.9 million and is part of the services sector and transportation industry. The stock has a beta of 1.98 and a short float of 7.2% with 4.94 days to cover. Shares are up 0.3% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Costamare as a

hold

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

Highlights from the ratings report include:

  • The gross profit margin for COSTAMARE INC is currently very high, coming in at 74.84%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 30.99% significantly outperformed against the industry average.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 6.2%. Since the same quarter one year prior, revenues slightly dropped by 3.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Net operating cash flow has declined marginally to $62.40 million or 4.46% when compared to the same quarter last year. Despite a decrease in cash flow of 4.46%, COSTAMARE INC is still significantly exceeding the industry average of -87.63%.
  • Currently the debt-to-equity ratio of 1.52 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 0.43, which clearly demonstrates the inability to cover short-term cash needs.

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