Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Golar LNG as such a stock due to the following factors:
- GLNG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $27.5 million.
- GLNG has traded 67,589 shares today.
- GLNG traded in a range 203.3% of the normal price range with a price range of $2.00.
- GLNG traded above its daily resistance level (quality: 20 days, meaning that the stock is crossing a resistance level set by the last 20 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in GLNG with the Ticky from Trade-Ideas. See the FREE profile for GLNG NOW at Trade-Ideas
More details on GLNG:
Golar LNG Limited, a midstream liquefied natural gas (LNG) company, is engaged in the transportation, regasification and liquefaction, and trading of LNG. The company operates in two segments, Vessel Operations and Commodity Trading. The stock currently has a dividend yield of 4.1%. GLNG has a PE ratio of 27.6. Currently there are 3 analysts that rate Golar LNG a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Golar LNG has been 933,300 shares per day over the past 30 days. Golar LNG has a market cap of $3.5 billion and is part of the services sector and transportation industry. The stock has a beta of 0.89 and a short float of 12.4% with 8.90 days to cover. Shares are up 21.1% year-to-date as of the close of trading on Friday.
rates Golar LNG as a
. 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 solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.
Highlights from the ratings report include:
- The current debt-to-equity ratio, 0.40, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, GLNG has a quick ratio of 1.86, which demonstrates the ability of the company to cover short-term liquidity needs.
- GLNG, with its very weak revenue results, has greatly underperformed against the industry average of 3.0%. Since the same quarter one year prior, revenues plummeted by 80.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- The gross profit margin for GOLAR LNG LTD is currently extremely low, coming in at 9.78%. It has decreased significantly from the same period last year. Despite the weak results of the gross profit margin, the net profit margin of 21.82% has significantly outperformed against the industry average.
- Net operating cash flow has significantly decreased to $10.25 million or 89.48% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full Golar LNG Ratings Report.