Trade-Ideas LLC identified Ocean Rig UDW ( ORIG) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Ocean Rig UDW as such a stock due to the following factors:

  • ORIG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.7 million.
  • ORIG has traded 267,566 shares today.
  • ORIG is trading at 2.73 times the normal volume for the stock at this time of day.
  • ORIG is trading at a new high 4.35% 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 ORIG:

Ocean Rig UDW Inc., an offshore drilling contractor, provides oilfield services for offshore oil and gas exploration, development, and production drilling worldwide. It specializes in the ultra-deepwater and harsh-environment segment of the offshore drilling industry. The stock currently has a dividend yield of 25.9%. ORIG has a PE ratio of 2. Currently there is 1 analyst that rates Ocean Rig UDW a buy, 3 analysts rate it a sell, and 1 rates it a hold.

The average volume for Ocean Rig UDW has been 1.5 million shares per day over the past 30 days. Ocean Rig UDW has a market cap of $120.6 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.92 and a short float of 6.8% with 1.96 days to cover. Shares are down 36.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Ocean Rig UDW as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, disappointing return on equity and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 81.14%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 290.90% 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.
  • 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 Energy Equipment & Services industry and the overall market on the basis of return on equity, OCEAN RIG UDW INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • OCEAN RIG UDW INC 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 reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, OCEAN RIG UDW INC reported lower earnings of $0.53 versus $1.97 in the prior year. This year, the market expects an improvement in earnings ($1.67 versus $0.53).
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Energy Equipment & Services industry average, but is less than that of the S&P 500. The net income has significantly decreased by 299.3% when compared to the same quarter one year ago, falling from $87.51 million to -$174.40 million.
  • Despite the weak revenue results, ORIG has significantly outperformed against the industry average of 38.1%. Since the same quarter one year prior, revenues slightly dropped by 4.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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