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The Transportation industry as a whole closed the day up 0.1% versus the S&P 500, which was up 1.0%. Laggards within the Transportation industry included PHI ( PHII), down 1.8%, Euroseas ( ESEA), down 2.6%, FreeSeas ( FREE), down 12.2%, Paragon Shipping ( PRGN), down 6.8% and Global Ship Lease ( GSL), down 1.7%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

FreeSeas ( FREE) is one of the companies that pushed the Transportation industry lower today. FreeSeas was down $0.01 (12.2%) to $0.07 on light volume. Throughout the day, 1,082,144 shares of FreeSeas exchanged hands as compared to its average daily volume of 1,866,800 shares. The stock ranged in price between $0.07-$0.08 after having opened the day at $0.08 as compared to the previous trading day's close of $0.08.

FreeSeas Inc., through its subsidiaries, provides drybulk shipping services. Its vessels carry various drybulk commodities, such as iron ore, grain, and coal, as well as bauxite, phosphate, fertilizers, steel products, cement, sugar, and rice. FreeSeas has a market cap of $9.1 million and is part of the services sector. Shares are down 11.1% year-to-date as of the close of trading on Wednesday.

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

Highlights from TheStreet Ratings analysis on FREE go as follows:

  • FREE'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 95.98%, 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.
  • FREE's debt-to-equity ratio of 0.62 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.11 is very low and demonstrates very weak liquidity.
  • The revenue fell significantly faster than the industry average of 24.9%. Since the same quarter one year prior, revenues fell by 45.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Compared to other companies in the Marine industry and the overall market, FREESEAS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • FREESEAS INC 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 two years. During the past fiscal year, FREESEAS INC continued to lose money by earning -$29.37 versus -$220.50 in the prior year.

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

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At the close, Euroseas ( ESEA) was down $0.02 (2.6%) to $0.71 on light volume. Throughout the day, 26,427 shares of Euroseas exchanged hands as compared to its average daily volume of 59,600 shares. The stock ranged in price between $0.70-$0.75 after having opened the day at $0.70 as compared to the previous trading day's close of $0.73.

Euroseas Ltd. provides ocean-going transportation services worldwide. It owns and operates dry bulk carriers that transport bulks, such as iron ore, coal, and grains, as well as bauxite, phosphate, and fertilizers. Euroseas has a market cap of $40.7 million and is part of the services sector. Shares are down 3.9% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Euroseas a buy, no analysts rate it a sell, and 2 rate it a hold.

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TheStreet Ratings rates Euroseas as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on ESEA go as follows:

  • 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 Marine industry and the overall market, EUROSEAS LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$1.63 million or 421.15% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for EUROSEAS LTD is rather low; currently it is at 21.79%. Regardless of ESEA's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, ESEA's net profit margin of -35.67% significantly underperformed when compared to the industry average.
  • ESEA'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 45.26%, 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 company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Marine industry average. The net income increased by 1.9% when compared to the same quarter one year prior, going from -$3.81 million to -$3.74 million.

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

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PHI ( PHII) was another company that pushed the Transportation industry lower today. PHI was down $0.63 (1.8%) to $34.37 on heavy volume. Throughout the day, 2,861 shares of PHI exchanged hands as compared to its average daily volume of 500 shares. The stock ranged in price between $33.84-$34.56 after having opened the day at $34.56 as compared to the previous trading day's close of $35.00.

PHI, Inc. provides helicopter transportation services to the oil and gas exploration, development, and production industry, principally in the Gulf of Mexico. The company operates in three business segments: Oil and Gas, Air Medical, and Technical Services. PHI has a market cap of $101.7 million and is part of the services sector. Shares are down 2.8% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates PHI as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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Highlights from TheStreet Ratings analysis on PHII go as follows:

  • PHII's revenue growth has slightly outpaced the industry average of 7.0%. Since the same quarter one year prior, revenues slightly increased by 7.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • PHI INC has improved earnings per share by 25.0% 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 two years. During the past fiscal year, PHI INC increased its bottom line by earning $3.77 versus $1.16 in the prior year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Energy Equipment & Services industry average. The net income increased by 25.2% when compared to the same quarter one year prior, rising from $13.78 million to $17.25 million.
  • Net operating cash flow has slightly increased to $10.79 million or 3.75% when compared to the same quarter last year. In addition, PHI INC has also modestly surpassed the industry average cash flow growth rate of -4.20%.

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

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