Quick Win by the Algorithm: TOO Has Overcome 2016 Volatility

Quick Win by the Algorithm

On June 27th, 2017, the I Know First algorithm issued a bullish forecast for Teekay Offshore Partners L.P. (NYSE:TOO). TOO had a signal of 18.63 and a predictability of 0.12. As a result, in accordance with the forecast, the company’s stock had a return of 18.11% within 3 days, showing a quick win by the algorithm.

Quick Win TOOTeekay Offshore Partners L.P. provides marine transportation, oil production, storage, long-distance towing, offshore installation and maintenance, and safety services to the energy and oil service companies in the North Sea, Brazil, and the East Coast of Canada. As of December 31, 2016, its fleet consisted of 31 shuttle tankers, 6 FPSO units, 7 FSO units, 7 long-distance towing and offshore installation vessels, 1 UMS, and 2 chartered-in conventional oil tankers. Teekay Offshore GP L.L.C. serves as the general partner of Teekay Offshore Partners L.P. The company was founded in 2006 and is headquartered in Hamilton, Bermuda. Teekay Offshore Partners L.P. is a subsidiary of Teekay Corporation.

Quick Win TOO

In the first quarter of 2017, Teekay Offshore Partners L.P. (NYSE:TOO) achieved revenues of $276.14 million USD and net earnings of $18.76 million USD. Encouragingly, TOO posted a 556.81% earnings growth measured year over year. Additionally, net margin increased from -1.34% to 6.79% in the year over year results. TOO’s change in earnings ranks about average among its peer group. The results suggest that TOO is controlling its market share over the 2016-2017 time frame.

Companies occasionally sacrifice improvements in revenues and margins in order to extend beneficial terms to customers and vendors. It is likely that the company’s performance is a result of successfully delivering in the marketplace and not simply an accounting adjustment. Change in operating cash flow of -21.84% compared to the same period last year is very similar to the change in earnings this period. Additionally, this change in operating cash flow is about average among its peer group. This suggests that the company did not use accruals or reserves to manage earnings this period, and that their earnings results are likely sustainable.

Current I Know First subscribers received this bullish TOO forecast on June 27, 2017

Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.