Strong On High Relative Volume: Capital Product Partners (CPLP)

Trade-Ideas LLC identified Capital Product Partners ( CPLP) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Capital Product Partners as such a stock due to the following factors:

  • CPLP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.8 million.
  • CPLP has traded 561,021 shares today.
  • CPLP is trading at 11.07 times the normal volume for the stock at this time of day.
  • CPLP is trading at a new high 8.06% 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 CPLP:

Capital Product Partners L.P., a shipping company, provides marine transportation services in Greece. The stock currently has a dividend yield of 10%. CPLP has a PE ratio of 8. Currently there are 4 analysts that rate Capital Product Partners a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Capital Product Partners has been 1.1 million shares per day over the past 30 days. Capital Product has a market cap of $368.5 million and is part of the services sector and transportation industry. The stock has a beta of 1.34 and a short float of 1.2% with 1.45 days to cover. Shares are down 38.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Capital Product Partners as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 23.9%. Since the same quarter one year prior, revenues rose by 18.7%. 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 return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CAPITAL PRODUCT PARTNERS LP's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has decreased by 0.4% when compared to the same quarter one year ago, dropping from $12.15 million to $12.10 million.
  • Looking at the price performance of CPLP's shares over the past 12 months, there is not much good news to report: the stock is down 62.22%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

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