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 $4.2 million.
  • GLF has traded 171,622 shares today.
  • GLF is trading at 11.71 times the normal volume for the stock at this time of day.
  • GLF is trading at a new low 13.01% 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. 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 495,800 shares per day over the past 30 days. GulfMark has a market cap of $148.2 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.95 and a short float of 24.1% with 8.17 days to cover. Shares are up 58% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates GulfMark Offshore as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • GULFMARK OFFSHORE INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, GULFMARK OFFSHORE INC reported lower earnings of $2.38 versus $2.69 in the prior year. For the next year, the market is expecting a contraction of 180.5% in earnings (-$1.92 versus $2.38).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Energy Equipment & Services industry. The net income has significantly decreased by 860.9% when compared to the same quarter one year ago, falling from $24.34 million to -$185.23 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Energy Equipment & Services industry and the overall market, GULFMARK OFFSHORE INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for GULFMARK OFFSHORE INC is currently lower than what is desirable, coming in at 31.53%. It has decreased significantly from the same period last year.
  • Net operating cash flow has significantly decreased to $7.95 million or 85.76% 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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