Strong On High Volume: GasLog (GLOG)

Trade-Ideas LLC identified GasLog ( GLOG) as a strong 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 $9.7 million.
  • GLOG has traded 112,225 shares today.
  • GLOG is trading at 4.87 times the normal volume for the stock at this time of day.
  • GLOG is trading at a new high 3.01% 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 GLOG:

GasLog Ltd., together with its subsidiaries, engages in the ownership, operation, and management of vessels in the liquefied natural gas (LNG) market worldwide. It provides maritime services for the transportation of LNG; and LNG vessel management services. The stock currently has a dividend yield of 4.2%. Currently there are 4 analysts that rate GasLog a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for GasLog has been 736,900 shares per day over the past 30 days. GasLog has a market cap of $1.1 billion and is part of the services sector and transportation industry. The stock has a beta of 1.57 and a short float of 10.2% with 6.64 days to cover. Shares are up 48% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates GasLog as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 32.0%. Since the same quarter one year prior, revenues slightly increased by 8.6%. 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.
  • Net operating cash flow has slightly increased to $44.07 million or 7.48% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -40.93%.
  • The gross profit margin for GASLOG LTD is currently very high, coming in at 73.34%. Regardless of GLOG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GLOG's net profit margin of 5.13% compares favorably to the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 45.77%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 63.63% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, GLOG is still more expensive than most of the other companies in its industry.
  • The debt-to-equity ratio is very high at 2.37 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, GLOG has a quick ratio of 0.53, this demonstrates the lack of ability of the company to cover short-term liquidity needs.

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