3 Stocks Pushing The Energy Industry Lower

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The Energy industry as a whole closed the day up 1.4% versus the S&P 500, which was down 0.4%. Laggards within the Energy industry included Houston American Energy ( HUSA), down 5.0%, Andatee China Marine Fuel Services ( AMCF), down 2.0%, Pedevco ( PED), down 3.2%, Superior Drilling Products ( SDPI), down 7.1% and Samson Oil & Gas ( SSN), down 3.2%.

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

Pedevco ( PED) is one of the companies that pushed the Energy industry lower today. Pedevco was down $0.02 (3.2%) to $0.60 on heavy volume. Throughout the day, 425,109 shares of Pedevco exchanged hands as compared to its average daily volume of 85,100 shares. The stock ranged in price between $0.58-$0.65 after having opened the day at $0.62 as compared to the previous trading day's close of $0.62.

PEDEVCO Corp., doing business as Pacific Energy Development, is engaged in the acquisition, exploration, development, and production of oil and natural gas shale plays in the United States. Pedevco has a market cap of $17.5 million and is part of the basic materials sector. Shares are up 30.7% year-to-date as of the close of trading on Friday. Currently there are 2 analysts who rate Pedevco a buy, no analysts rate it a sell, and none rate it a hold.

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

Highlights from TheStreet Ratings analysis on PED 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 132.5% when compared to the same quarter one year ago, falling from -$2.07 million to -$4.80 million.
  • The debt-to-equity ratio is very high at 9.67 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, PED has a quick ratio of 0.54, 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, PEDEVCO CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 72.82%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 54.54% compared to the year-earlier 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.
  • PEDEVCO 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, PEDEVCO CORP continued to lose money by earning -$0.98 versus -$1.80 in the prior year. This year, the market expects an improvement in earnings (-$0.79 versus -$0.98).

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

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At the close, Andatee China Marine Fuel Services ( AMCF) was down $0.03 (2.0%) to $1.47 on light volume. Throughout the day, 12,522 shares of Andatee China Marine Fuel Services exchanged hands as compared to its average daily volume of 31,600 shares. The stock ranged in price between $1.41-$1.47 after having opened the day at $1.47 as compared to the previous trading day's close of $1.50.

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 $15.4 million and is part of the basic materials sector. Shares are down 2.6% year-to-date as of the close of trading on Friday.

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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 generally high debt management risk, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and poor profit margins.

Highlights from TheStreet Ratings analysis on AMCF go as follows:

  • The debt-to-equity ratio is very high at 2.80 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 0.36, which clearly demonstrates the inability to cover short-term cash needs.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. 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.
  • Net operating cash flow has significantly decreased to $0.74 million or 74.14% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • In its most recent trading session, AMCF has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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 gross profit margin for ANDATEE CHINA MARINE FUEL is currently extremely low, coming in at 5.63%. 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, the net profit margin of 0.08% trails 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.

Houston American Energy ( HUSA) was another company that pushed the Energy industry lower today. Houston American Energy was down $0.01 (5.0%) to $0.19 on average volume. Throughout the day, 167,259 shares of Houston American Energy exchanged hands as compared to its average daily volume of 132,000 shares. The stock ranged in price between $0.19-$0.21 after having opened the day at $0.19 as compared to the previous trading day's close of $0.20.

Houston American Energy Corp., an independent energy company, explores for, develops, and produces natural gas, crude oil, and condensate from properties located principally in the Gulf Coast area of the United States and South America. Houston American Energy has a market cap of $9.9 million and is part of the basic materials sector. Shares are up 24.6% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates Houston American Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.

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

Highlights from TheStreet Ratings analysis on HUSA go as follows:

  • Net operating cash flow has decreased to -$0.36 million or 29.60% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • HUSA'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 44.12%, which is also worse than the performance of the S&P 500 Index. 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'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, HOUSTON AMERN ENERGY CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for HOUSTON AMERN ENERGY CORP is rather high; currently it is at 56.14%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, HUSA's net profit margin of -898.24% significantly underperformed when compared to the industry average.
  • HUSA, with its very weak revenue results, has greatly underperformed against the industry average of 21.4%. Since the same quarter one year prior, revenues plummeted by 66.5%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.

You can view the full analysis from the report here: Houston American 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.

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