Trade-Ideas LLC identified

GasLog

(

GLOG

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

  • GLOG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.3 million.
  • GLOG has traded 99,176 shares today.
  • GLOG is trading at 3.90 times the normal volume for the stock at this time of day.
  • GLOG is trading at a new low 5.06% 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 GLOG:

GasLog Ltd., together with its subsidiaries, owns, operates, and manages vessels in the liquefied natural gas (LNG) market worldwide. It provides maritime services for the transportation of LNG; and LNG vessel management services. As of August 18, 2015, the company operated 11 LNG carriers. The stock currently has a dividend yield of 5.1%. GLOG has a PE ratio of 14. Currently there are 6 analysts that rate GasLog a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for GasLog has been 917,000 shares per day over the past 30 days. GasLog has a market cap of $877.4 million and is part of the services sector and transportation industry. The stock has a beta of 0.85 and a short float of 8.2% with 4.15 days to cover. Shares are down 49.5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates GasLog as a

hold

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

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 34.6%. Since the same quarter one year prior, revenues rose by 42.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 458.3% when compared to the same quarter one year prior, rising from $1.48 million to $8.24 million.
  • The gross profit margin for GASLOG LTD is currently very high, coming in at 71.33%. Regardless of GLOG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GLOG's net profit margin of 7.88% compares favorably to the industry average.
  • GLOG'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 55.06%, 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. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, GLOG is still more expensive than most of the other companies in its industry.
  • The debt-to-equity ratio is very high at 2.38 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, GLOG maintains a poor quick ratio of 0.71, which illustrates the inability to avoid short-term cash problems.

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