GasLog (GLOG) Is Weak On High Volume Today

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.

Trade-Ideas LLC identified GasLog ( GLOG) as a weak on high relative volume 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 $11.3 million.
  • GLOG has traded 90,517 shares today.
  • GLOG is trading at 3.89 times the normal volume for the stock at this time of day.
  • GLOG is trading at a new low 4.01% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 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. As of February 27, 2015, the company operated 20 LNG carriers. The stock currently has a dividend yield of 2.5%. GLOG has a PE ratio of 26.9. Currently there are 5 analysts that rate GasLog a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for GasLog has been 587,200 shares per day over the past 30 days. GasLog has a market cap of $1.8 billion and is part of the services sector and transportation industry. The stock has a beta of 1.30 and a short float of 6.5% with 5.70 days to cover. Shares are up 9.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates GasLog as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • GLOG's very impressive revenue growth greatly exceeded the industry average of 33.1%. Since the same quarter one year prior, revenues leaped by 66.8%. 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.
  • The gross profit margin for GASLOG LTD is currently very high, coming in at 78.27%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 8.92% is above that of the industry average.
  • Net operating cash flow has increased to $41.00 million or 33.22% when compared to the same quarter last year. In addition, GASLOG LTD has also vastly surpassed the industry average cash flow growth rate of -42.26%.
  • GASLOG LTD 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 suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, GASLOG LTD reported lower earnings of $0.53 versus $0.90 in the prior year. This year, the market expects an improvement in earnings ($0.74 versus $0.53).
  • The debt-to-equity ratio is very high at 2.04 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, GLOG's quick ratio is somewhat strong at 1.39, demonstrating the ability to handle short-term liquidity needs.

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