McDermott International Stock Analysis: Cash Flow Is Better Than Cash – Why McDermott International Is A Losing Play (MDR)

MDR Stock Analysis: Summary

  • First-quarter report blames third parties for losses.MDR Stock Analysis
  • Assets are slowly decreasing with no reason for the trend to actually change.
  • Algorithmic money flow analysis predicts McDermott will experience a sharp decline.

McDermott International (NYSE:MDR) is an international engineering, procurement, construction and installation company in the oil and gas sector. The company has recently released their first-quarter report, which seems particularly worrisome. McDermott reported a net loss of $14.5 million. On the one hand, this looks like a vast improvement in comparison to Q1 2014 when the company lost $46.5 million; however, a deeper look finds some serious inconsistencies and problems.


Algorithmic Analysis

Our market screening algorithm indicates McDermott International is currently dangerous to hold and risky to buy. According to the most recent forecast based on the I Know First Algorithm’sfair valuation and price equilibrium, and recent market money flow analysis, the stock is going to go down in price over the next month. The monthly predictability score of -0.01 (bottom number) indicates that historically the price movement of McDermott was completely unpredictable. The stock is a part of our aggressive universe, which means it standard deviation classifies it as extremely volatile, and the signal (middle number) of -35.99 indicates a strong bearish outlook and net outflow of capital.Based on this, we would highly recommend selling the stock if it is a part of your existing portfolio.

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I Know First Research is the analytic branch of I Know First, a financial start up company that specializes in quantitatively predicting the stock market.