Trade-Ideas LLC identified

Teekay Offshore Partners



) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Teekay Offshore Partners as such a stock due to the following factors:

  • TOO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.9 million.
  • TOO has traded 62,295 shares today.
  • TOO is down 3.3% today.
  • TOO was up 11.1% yesterday.

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More details on TOO:

Teekay Offshore Partners L.P. provides marine transportation, oil production, storage, towage, and floating accommodation services to the offshore oil industry in the North Sea and Brazil. The stock currently has a dividend yield of 59.6%. TOO has a PE ratio of 4. Currently there are 2 analysts that rate Teekay Offshore Partners a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Teekay Offshore Partners has been 582,700 shares per day over the past 30 days. Teekay has a market cap of $402.3 million and is part of the services sector and transportation industry. The stock has a beta of 1.25 and a short float of 2% with 0.43 days to cover. Shares are down 80.8% year-to-date as of the close of trading on Friday.

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TheStreet Quant Ratings

rates Teekay Offshore Partners as a


. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • 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 Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 291.9% when compared to the same quarter one year ago, falling from $28.52 million to -$54.74 million.
  • The debt-to-equity ratio is very high at 2.85 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. 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.
  • 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 Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, TEEKAY OFFSHORE PARTNERS LP underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 83.38%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 376.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • TEEKAY OFFSHORE PARTNERS LP 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, TEEKAY OFFSHORE PARTNERS LP swung to a loss, reporting -$0.22 versus $0.94 in the prior year. This year, the market expects an improvement in earnings ($2.53 versus -$0.22).

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