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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 $90.1 million.
- GLNG has traded 3.3 million shares today.
- GLNG traded in a range 208.7% of the normal price range with a price range of $3.56.
- GLNG traded above its daily resistance level (quality: 530 days, meaning that the stock is crossing a resistance level set by the last 530 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.
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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 3.2%. GLNG has a PE ratio of 35.5. 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 944,100 shares per day over the past 30 days. Golar LNG has a market cap of $4.6 billion and is part of the services sector and transportation industry. The stock has a beta of 0.89 and a short float of 10.6% with 2.98 days to cover. Shares are up 52.4% year-to-date as of the close of trading on Tuesday.
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, 0.44, is low and is below the industry average, implying that there has been successful management of debt levels.
- Compared to its closing price of one year ago, GLNG's share price has jumped by 68.16%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- The revenue fell significantly faster than the industry average of 3.2%. Since the same quarter one year prior, revenues fell by 41.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for GOLAR LNG LTD is currently extremely low, coming in at 5.18%. It has decreased significantly from the same period last year. Despite the weak results of the gross profit margin, the net profit margin of 61.96% has significantly outperformed against the industry average.
- Net operating cash flow has significantly decreased to -$80.96 million or 3358.10% 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.