Tuesday, October 28, 2014

Camac Energy Inc (CAK) Downgraded From Hold to Sell

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. aTheStreet Ratings quantitative algorithm evaluates over 4,300 stocks on a daily basis by 32 different data factors and assigns a unique buy, sell, or hold recommendation on each stock. aClick here to learn more. NEW YORK (TheStreet) -- Camac Energy Inca has been downgraded by TheStreet Ratings from Hold to Sell with a ratings score of D+. aTheStreet Ratings Team has this to say about their recommendation: "We rate CAMAC ENERGY INC (CAK) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, generally disappointing historical performance in the stock itself and deteriorating net income." Must Read: Warren Buffett's 25 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Highlights from the analysis by TheStreet Ratings Team goes as follows: Net operating cash flow has significantly decreased to -$21.61 million or 10192.38% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower. In its most recent trading session, CAK has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time. The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Oil, Gas & Consumable Fuels industry average. The net income has remained constant at -$11.93 million when compared to the same quarter one year ago. Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CAMAC ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500. CAK, with its decline in revenue, underperformed when compared the industry average of 2.7%. Since the same quarter one year prior, revenues fell by 25.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share. You can view the full analysis from the report here: CAK Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.


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