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 $3.6 million.
  • CMRE has traded 68,989 shares today.
  • CMRE is trading at 3.05 times the normal volume for the stock at this time of day.
  • CMRE is trading at a new low 4.06% 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 17.1%. CMRE has a PE ratio of 4. Currently there are 3 analysts that rate Costamare a buy, 2 analysts rate it a sell, and 3 rate it a hold.

The average volume for Costamare has been 284,300 shares per day over the past 30 days. Costamare has a market cap of $510.2 million and is part of the services sector and transportation industry. The stock has a beta of 1.59 and a short float of 0.2% with 0.13 days to cover. Shares are down 22% 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 revenue growth, notable return on equity and attractive valuation levels. 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 revenue growth came in higher than the industry average of 14.3%. Since the same quarter one year prior, revenues slightly increased by 1.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • COSTAMARE INC has improved earnings per share by 18.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, COSTAMARE INC increased its bottom line by earning $1.67 versus $1.37 in the prior year. This year, the market expects an improvement in earnings ($1.70 versus $1.67).
  • 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 60.84%, 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 1.62 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 0.46, which clearly demonstrates the inability to cover short-term cash needs.

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