Trade-Ideas LLC identified

Teekay Tankers

(

TNK

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

  • TNK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.6 million.
  • TNK has traded 293,078 shares today.
  • TNK is trading at 2.20 times the normal volume for the stock at this time of day.
  • TNK is trading at a new low 3.17% 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 TNK:

Teekay Tankers Ltd. is engaged in the marine transportation of crude oil and refined petroleum products through the operation of its oil and product tankers worldwide. The stock currently has a dividend yield of 11.2%. TNK has a PE ratio of 3. Currently there are 4 analysts that rate Teekay Tankers a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Teekay Tankers has been 2.7 million shares per day over the past 30 days. Teekay Tankers has a market cap of $592.9 million and is part of the services sector and transportation industry. The stock has a beta of 2.81 and a short float of 6% with 2.98 days to cover. Shares are down 44.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Teekay Tankers as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, compelling growth in net income, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • TNK's very impressive revenue growth greatly exceeded the industry average of 34.6%. Since the same quarter one year prior, revenues leaped by 104.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, TEEKAY TANKERS LTD's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • 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 164.4% when compared to the same quarter one year prior, rising from $20.26 million to $53.56 million.
  • Net operating cash flow has significantly increased by 428.14% to $26.25 million when compared to the same quarter last year. In addition, TEEKAY TANKERS LTD has also vastly surpassed the industry average cash flow growth rate of -39.34%.
  • 47.46% is the gross profit margin for TEEKAY TANKERS LTD which we consider to be strong. Regardless of TNK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TNK's net profit margin of 34.55% significantly outperformed against the industry.

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