Trade-Ideas LLC identified

Helix Energy Solutions Group

(

HLX

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

  • HLX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.8 million.
  • HLX has traded 199,767 shares today.
  • HLX is trading at 3.97 times the normal volume for the stock at this time of day.
  • HLX is trading at a new low 4.13% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in HLX with the Ticky from Trade-Ideas. See the FREE profile for HLX NOW at Trade-Ideas

More details on HLX:

Helix Energy Solutions Group, Inc., together with its subsidiaries, provides specialty services to the offshore energy industry primarily in the Gulf of Mexico, North Sea, the Asia Pacific, and West Africa regions. HLX has a PE ratio of 5. Currently there are 2 analysts that rate Helix Energy Solutions Group a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Helix Energy Solutions Group has been 1.9 million shares per day over the past 30 days. Helix Energy Solutions Group has a market cap of $557.3 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.67 and a short float of 5.1% with 3.16 days to cover. Shares are down 76.5% year-to-date as of the close of trading on Thursday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Helix Energy Solutions Group as a

hold

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

Highlights from the ratings report include:

  • The current debt-to-equity ratio, 0.47, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 2.88, which clearly demonstrates the ability to cover short-term cash needs.
  • HLX, with its decline in revenue, underperformed when compared the industry average of 22.3%. Since the same quarter one year prior, revenues fell by 45.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Net operating cash flow has significantly decreased to $5.58 million or 93.85% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Energy Equipment & Services industry and the overall market, HELIX ENERGY SOLUTIONS GROUP's return on equity is significantly below that of the industry average and is below that of the S&P 500.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.