Trade-Ideas LLC identified

Global Partners

(

GLP

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

  • GLP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.5 million.
  • GLP has traded 55,776 shares today.
  • GLP is trading at 2.78 times the normal volume for the stock at this time of day.
  • GLP is trading at a new low 3.13% 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 GLP with the Ticky from Trade-Ideas. See the FREE profile for GLP NOW at Trade-Ideas

More details on GLP:

Global Partners LP, a midstream logistics and marketing company, distributes gasoline, distillates, residual oil, and renewable fuels to wholesalers, retailers, and commercial customers in the New England states and New York. The stock currently has a dividend yield of 12.4%. GLP has a PE ratio of 7. Currently there is 1 analyst that rates Global Partners a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Global Partners has been 379,400 shares per day over the past 30 days. Global has a market cap of $508.2 million and is part of the services sector and wholesale industry. The stock has a beta of 0.87 and a short float of 1.3% with 0.23 days to cover. Shares are down 14.6% year-to-date as of the close of trading on Tuesday.

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 Global Partners as a

hold

. Among the primary strengths of the company is its reasonable valuation levels, considering its current price compared to earnings, book value and other measures. At the same time, however, we also find weaknesses including generally higher debt management risk, weak operating cash flow and deteriorating net income.

Highlights from the ratings report include:

  • GLP, with its decline in revenue, slightly underperformed the industry average of 31.6%. Since the same quarter one year prior, revenues fell by 38.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • GLOBAL 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, GLOBAL PARTNERS LP increased its bottom line by earning $3.96 versus $1.43 in the prior year. For the next year, the market is expecting a contraction of 70.5% in earnings ($1.17 versus $3.96).
  • Currently the debt-to-equity ratio of 1.90 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. To add to this, GLP has a quick ratio of 0.68, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has significantly decreased to $51.84 million or 64.09% 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.

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.