3 Stocks Advancing The Energy Industry

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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 89 points (0.5%) at 16,650 as of Wednesday, Aug. 13, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 2,238 issues advancing vs. 759 declining with 137 unchanged.

The Energy industry as a whole was unchanged today versus the S&P 500, which was up 0.6%. Top gainers within the Energy industry included Sonde Resources ( SOQ), up 37.6%, PostRock Energy ( PSTR), up 2.5%, Andatee China Marine Fuel Services ( AMCF), up 2.4%, FieldPoint Petroleum ( FPP), up 3.1% and Sinopec Shanghai Petrochemical ( SHI), up 2.3%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Andatee China Marine Fuel Services ( AMCF) is one of the companies that pushed the Energy industry higher today. Andatee China Marine Fuel Services was up $0.04 (2.4%) to $1.72 on light volume. Throughout the day, 4,833 shares of Andatee China Marine Fuel Services exchanged hands as compared to its average daily volume of 39,700 shares. The stock ranged in a price between $1.70-$1.72 after having opened the day at $1.72 as compared to the previous trading day's close of $1.68.

Andatee China Marine Fuel Services Corporation, through its subsidiaries, engages in the production, storage, distribution, and trading of blended marine fuel oil for cargo and fishing vessels in the People's Republic of China. Andatee China Marine Fuel Services has a market cap of $17.1 million and is part of the basic materials sector. Shares are down 1.2% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Andatee China Marine Fuel Services a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Andatee China Marine Fuel Services as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on AMCF go as follows:

  • The debt-to-equity ratio is very high at 4.12 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, AMCF has a quick ratio of 0.62, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ANDATEE CHINA MARINE FUEL's return on equity significantly trails that of both the industry average and the S&P 500.
  • ANDATEE CHINA MARINE FUEL 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. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, ANDATEE CHINA MARINE FUEL swung to a loss, reporting -$0.11 versus $0.17 in the prior year.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 1121.5% when compared to the same quarter one year ago, falling from $0.34 million to -$3.42 million.
  • The gross profit margin for ANDATEE CHINA MARINE FUEL is currently extremely low, coming in at 8.50%. Regardless of AMCF's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, AMCF's net profit margin of -8.15% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here: Andatee China Marine Fuel Services Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

At the close, PostRock Energy ( PSTR) was up $0.03 (2.5%) to $1.25 on average volume. Throughout the day, 49,093 shares of PostRock Energy exchanged hands as compared to its average daily volume of 35,600 shares. The stock ranged in a price between $1.18-$1.25 after having opened the day at $1.20 as compared to the previous trading day's close of $1.22.

PostRock Energy Corporation, an independent oil and gas company, is engaged in the acquisition, exploration, development, production, and gathering of crude oil and natural gas. PostRock Energy has a market cap of $37.6 million and is part of the basic materials sector. Shares are up 5.2% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate PostRock Energy a buy, no analysts rate it a sell, and none rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates PostRock Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on PSTR go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 187.0% when compared to the same quarter one year ago, falling from $6.88 million to -$5.99 million.
  • Currently the debt-to-equity ratio of 1.62 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with this, the company manages to maintain a quick ratio of 0.43, which clearly demonstrates the inability to cover short-term cash needs.
  • The share price of POSTROCK ENERGY CORP has not done very well: it is down 24.41% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, POSTROCK ENERGY CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • POSTROCK ENERGY CORP 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. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, POSTROCK ENERGY CORP continued to lose money by earning -$0.93 versus -$3.99 in the prior year. This year, the market expects an improvement in earnings (-$0.70 versus -$0.93).

You can view the full analysis from the report here: PostRock Energy Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Sonde Resources ( SOQ) was another company that pushed the Energy industry higher today. Sonde Resources was up $0.07 (37.6%) to $0.25 on heavy volume. Throughout the day, 102,791 shares of Sonde Resources exchanged hands as compared to its average daily volume of 35,500 shares. The stock ranged in a price between $0.19-$0.25 after having opened the day at $0.19 as compared to the previous trading day's close of $0.18.

Sonde Resources has a market cap of $12.1 million and is part of the basic materials sector. Shares are down 73.8% year-to-date as of the close of trading on Tuesday.

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.

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