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

  • TK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.3 million.
  • TK has traded 597,978 shares today.
  • TK is up 3.1% today.
  • TK was down 6.6% yesterday.

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More details on TK:

Teekay Corporation primarily provides crude oil and gas marine transportation services in Bermuda and internationally. The stock currently has a dividend yield of 2.2%. TK has a PE ratio of 9. Currently there is 1 analyst that rates Teekay a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Teekay has been 2.7 million shares per day over the past 30 days. Teekay has a market cap of $702.3 million and is part of the services sector and transportation industry. The stock has a beta of 1.56 and a short float of 6.2% with 2.25 days to cover. Shares are down 8.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

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

Highlights from the ratings report include:
  • The debt-to-equity ratio is very high at 8.10 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • Net operating cash flow has decreased to $136.77 million or 11.84% when compared to the same quarter last year. Despite a decrease in cash flow TEEKAY CORP is still fairing well by exceeding its industry average cash flow growth rate of -39.34%.
  • TK'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 77.39%, 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.
  • TEEKAY CORP 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, TEEKAY CORP turned its bottom line around by earning $1.12 versus -$0.77 in the prior year. For the next year, the market is expecting a contraction of 34.8% in earnings ($0.73 versus $1.12).
  • The gross profit margin for TEEKAY CORP is rather high; currently it is at 54.10%. Regardless of TK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TK's net profit margin of 5.46% compares favorably to the industry average.

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