Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Teekay Offshore Partners as such a stock due to the following factors:
- TOO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.8 million.
- TOO has traded 91,922 shares today.
- TOO is trading at 2.15 times the normal volume for the stock at this time of day.
- TOO is trading at a new low 3.04% 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.
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More details on TOO:
Teekay Offshore Partners L.P. provides marine transportation, oil production, storage, long-distance towing, offshore installation and maintenance, and safety services to the offshore oil industry in the North Sea and Brazil. The stock currently has a dividend yield of 7.3%. TOO has a PE ratio of 19. Currently there is 1 analyst that rates Teekay Offshore Partners a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for Teekay Offshore Partners has been 1.1 million shares per day over the past 30 days. Teekay has a market cap of $642.2 million and is part of the services sector and transportation industry. The stock has a beta of 3.23 and a short float of 5.6% with 6.16 days to cover. Shares are down 3.7% year-to-date as of the close of trading on Friday.
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rates Teekay Offshore Partners as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 24.6%. Since the same quarter one year prior, revenues rose by 30.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- TEEKAY OFFSHORE PARTNERS LP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, TEEKAY OFFSHORE PARTNERS LP turned its bottom line around by earning $0.36 versus -$0.22 in the prior year. This year, the market expects an improvement in earnings ($1.32 versus $0.36).
- 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. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, TEEKAY OFFSHORE PARTNERS LP's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- TOO's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 74.29%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- The debt-to-equity ratio is very high at 2.88 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.48, which clearly demonstrates the inability to cover short-term cash needs.
- You can view the full Teekay Offshore Partners Ratings Report.