Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

GulfMark Offshore

(

GLF

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

  • GLF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.5 million.
  • GLF has traded 93,184 shares today.
  • GLF is trading at 3.50 times the normal volume for the stock at this time of day.
  • GLF is trading at a new low 6.04% 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 GLF:

GulfMark Offshore, Inc. provides offshore marine support and transportation services primarily to the companies involved in the offshore exploration and production of oil and natural gas. The stock currently has a dividend yield of 6.4%. GLF has a PE ratio of 6.6. Currently there are no analysts that rate GulfMark Offshore a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for GulfMark Offshore has been 631,700 shares per day over the past 30 days. GulfMark has a market cap of $394.7 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.98 and a short float of 13.4% with 6.74 days to cover. Shares are down 28.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates GulfMark Offshore as a

hold

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • Despite currently having a low debt-to-equity ratio of 0.56, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that GLF's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.21 is high and demonstrates strong liquidity.
  • 42.66% is the gross profit margin for GULFMARK OFFSHORE INC which we consider to be strong. Regardless of GLF's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GLF's net profit margin of 6.26% compares favorably to the industry average.
  • 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 Energy Equipment & Services industry and the overall market, GULFMARK OFFSHORE INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Net operating cash flow has decreased to $48.54 million or 29.56% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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