Strong On High Volume: GulfMark Offshore (GLF)

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 GulfMark Offshore ( GLF) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified GulfMark Offshore as such a stock due to the following factors:

  • GLF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.4 million.
  • GLF has traded 79,043 shares today.
  • GLF is trading at 3.96 times the normal volume for the stock at this time of day.
  • GLF is trading at a new high 4.10% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 GLF:

GulfMark Offshore, Inc. provides offshore marine support and transportation services primarily to companies involved in the offshore exploration and production of oil and natural gas. The stock currently has a dividend yield of 4.6%. GLF has a PE ratio of 7.1. Currently there are no analysts that rate GulfMark Offshore a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for GulfMark Offshore has been 567,900 shares per day over the past 30 days. GulfMark has a market cap of $571.5 million and is part of the basic materials sector and energy industry. The stock has a beta of 2.12 and a short float of 13.7% with 4.51 days to cover. Shares are down 55.9% year-to-date as of the close of trading on Thursday.

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 GulfMark Offshore as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • GLF's revenue growth trails the industry average of 15.9%. Since the same quarter one year prior, revenues slightly increased by 5.7%. 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.
  • Despite currently having a low debt-to-equity ratio of 0.49, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that GLF's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.12 is high and demonstrates strong liquidity.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 55.88%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 25.20% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • 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 Energy Equipment & Services industry. The net income has decreased by 24.6% when compared to the same quarter one year ago, dropping from $32.29 million to $24.34 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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