Today's Dead Cat Bounce Stock Is GasLog (GLOG)

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 GasLog ( GLOG) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified GasLog as such a stock due to the following factors:

  • GLOG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.7 million.
  • GLOG has traded 125,802 shares today.
  • GLOG is up 3.6% today.
  • GLOG was down 10.3% yesterday.

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More details on GLOG:

GasLog Ltd., together with its subsidiaries, owns, operates, and manages vessels in the liquefied natural gas (LNG) market worldwide. It provides maritime services for the transportation of LNG and LNG vessel management services. The stock currently has a dividend yield of 2.3%. GLOG has a PE ratio of 22.9. Currently there are 3 analysts that rate GasLog a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for GasLog has been 1.3 million shares per day over the past 30 days. GasLog has a market cap of $1.7 billion and is part of the services sector and transportation industry. The stock has a beta of 1.28 and a short float of 10.7% with 4.04 days to cover. Shares are up 9.3% year-to-date as of the close of trading on Tuesday.

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

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates GasLog as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and generally higher debt management risk.

Highlights from the ratings report include:
  • GLOG's very impressive revenue growth greatly exceeded the industry average of 1.9%. Since the same quarter one year prior, revenues leaped by 122.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 112.49% to $45.70 million when compared to the same quarter last year. In addition, GASLOG LTD has also vastly surpassed the industry average cash flow growth rate of -6.46%.
  • Compared to its closing price of one year ago, GLOG's share price has jumped by 33.48%, exceeding the performance of the broader market during that same time frame. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, GASLOG LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • 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 92.8% when compared to the same quarter one year ago, falling from $20.43 million to $1.48 million.

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

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