Trade-Ideas LLC identified

Oceaneering International

(

OII

) 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 Oceaneering International as such a stock due to the following factors:

  • OII has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $48.4 million.
  • OII has traded 1.1 million shares today.
  • OII traded in a range 205.5% of the normal price range with a price range of $2.61.
  • OII traded above its daily resistance level (quality: 9 days, meaning that the stock is crossing a resistance level set by the last 9 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 OII:

Oceaneering International, Inc. provides engineered services and products primarily to the offshore oil and gas industry worldwide. The stock currently has a dividend yield of 2.8%. OII has a PE ratio of 11. Currently there are 4 analysts that rate Oceaneering International a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for Oceaneering International has been 1.7 million shares per day over the past 30 days. Oceaneering International has a market cap of $3.8 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.30 and a short float of 6.8% with 3.93 days to cover. Shares are down 33.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Oceaneering International 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, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The current debt-to-equity ratio, 0.50, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.49, which illustrates the ability to avoid short-term cash problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Energy Equipment & Services industry and the overall market on the basis of return on equity, OCEANEERING INTERNATIONAL has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Energy Equipment & Services industry. The net income has significantly decreased by 40.6% when compared to the same quarter one year ago, falling from $110.30 million to $65.47 million.
  • The gross profit margin for OCEANEERING INTERNATIONAL is currently lower than what is desirable, coming in at 28.51%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 8.07% trails that of the industry average.

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