Filed Under: ,
Tickers in this Article: DK, GPOR, MPC, LPI, EGY, ROSE, RRMS
So far today, the Nasdaq has increased 0.1%, the S&P 500 has moved little and the Dow is up 0.1%.

These are the biggest movers in the Oil and Gas Operations sector (DIG) (+0.7%):
Company Market Cap Percentage Change
Delek US Holdings (NYSE:DK) $1.54 billion -5.4%
Gulfport (Nasdaq:GPOR) $1.81 billion -4.4%
Marathon (NYSE:MPC) $18.15 billion -3%
Laredo Petroleum Holdings (NYSE:LPI) $2.84 billion +2.8%
VAALCO Energy (NYSE:EGY) $531 million +2.6%
Rosetta Resources (Nasdaq:ROSE) $2.61 billion -2.4%
Rose Rock (NYSE:RRMS) $542 million -2.1%
Broker Summary: Charles Schwab Online Brokerage

Delek US Holdings (NYSE:DK) has decreased to $24.91 per share, a 5.4% fall. At 413,229 shares, the company's volume so far today is in keeping with its current daily average. In technical analysis, trading volume is used to determine the strength of a market indicator. A wide array of ratios can be used by investors to estimate the attractiveness of a potential or existing investment and get an idea of its valuation. The debt-equity (D/E) ratio compares the total liabilities for a company to its total shareholder equity. The debt-equity ratio of 241% is very high. A high D/E ratios is an indication thar the company has been aggressive in financing its growth with debt which can result in volatile earnings as a result of the additional interest expense. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.

 

Slipping 4.4%, Gulfport (Nasdaq:GPOR) is currently trading at $31.13 per share. So far today, the company's volume is 568,527 shares. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. The capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. GPOR's capitalization ratio is 9.2%, which is relatively low. Investors generally consider a company with low debt and high equity levels is a good quality investment. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.

 

Currently trading at $52.03 per share, Marathon (NYSE:MPC) has fallen 3%. The company's volume for the day so far is 2.3 million shares, 0.8 times its average over the past three months. If a stock is trading on low volume, then there is not much interest in the stock. On the other hand, if a stock is trading on high volume, then there is a lot of interest in the stock. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. While measuring a price/earnings ratio (P/E ratio) is a popular valuation technique, the measure cannot be calculated for companies without earnings, so some investors analyze the price/sales ratio. MPC has a P/S ratio of 0.19, on the low end. Highly levered companies are likely to have lower P/S ratios because the price aspect of this ratio only measures stock market valuation while sales is a function of both stock market and bond market capitalization. It is important to compare P/S ratios for companies in the same industry, as ratios can vary quite widely for companies in different industries.

 

Laredo Petroleum Holdings (NYSE:LPI) is at $22.75 per share after an increase of 2.8%. So far today, 72,543 shares of the company's stock have changed hands. At this rate, trading activity will likely be down from yesterday when 248,621 shares changed hands. If a stock price moves on high volume, this means that the change is a significant one. In making a decision about a potential or existing investment, valuation ratios are useful as a basis for seeing whether the stock price is too high, reasonable, or a bargain. If the price/book value ratio of a stock is high, it may indicate that the stock is expensive, while a lower ratio may indicate that the stock is a bargain. LPI has a P/B ratio of 3.55 which shows that its share price is higher than its book value. This implies that investors expect management to create more value from a given set of assets and/or that the market value of the firm's assets is significantly higher than their accounting value. To put things in perspective, should be made among companies in the same industry rather than across industries. SEE: How Buybacks Warps The Price-To-Book Ratio

 

 

VAALCO Energy (NYSE:EGY) has increased to a share price of $9.42, a 2.6% rise. The company's volume is currently 240,286 shares for the day, in keeping with its current daily average. Volume is used to evaluate how meaningful the price movement of a stock is. Valuation ratios like the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield are useful in determining how attractive a potential or existing investment is. The debt ratio is calculated by dividing total liabilities by total assets. EGY has a low debt ratio of 12.6%. This indicates that the company engages in conservative financing with opportunities to borrow in the future at no significant risk. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.

 

Rosetta Resources (Nasdaq:ROSE) has fallen 2.4% and is currently trading at $48.09 per share. The company is currently trading a volume of 131,108 shares. Volume is an important indicator because it indicates how significant a price shift is. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The debt-equity (D/E) ratio is a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. ROSE has a low debt-equity ratio of 42%. A low D/E ratio may be a sign that the company is not taking advantage of leverage to increase its profits. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.

 

After a decline of 2.1%, Rose Rock (NYSE:RRMS) has hit a share price of $31.63. The company's volume is currently 2,522 shares for the day, 0.2 times the current three-month average. Volume is an important indicator in technical analysis as it is used to measure the worth of a market move. If the markets have made a strong price move either up or down the perceived strength of that move depends on the volume for that period. The higher the volume during that price move the more significant the move. A company's value as an investment is more easily estimated using valuation ratios such as the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. The capitalization ratio measures the debt component of the capital structure, or capitalization of a company (i.e., the sum of long-term debt liabilities and shareholder equity) to support operations and growth. RRMS has a low capitalization ratio of 0%. A very low capitalization ratio might be a sign that the company is stagnating and reducing the potential earnings for shareholders. This ratio is considered to be one of the more meaningful of the "debt" ratios - it delivers the key insight into the use of leverage by a company.

 

The Bottom Line The nature of the market is such that stocks will have good days and bad days. Daily stock performance should be weighed against historical performance and put in context of the market overall. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.

comments powered by Disqus

Trading Center