Analysts Downgrade Chinese Bunker Supplier from Hold to Sell

by Ship & Bunker News Team
Thursday October 23, 2014

Andatee China Marine Fuel Services Corp [NASDAQ:AMCF] (ACMF) on Wednesday was downgraded by analysts at TheStreet from hold to sell.

"We rate ANDATEE CHINA MARINE FUEL (AMCF) a SELL. This is driven by multiple weaknesses, 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 TheStreet Ratings Team said about their recommendation.

"The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity and poor profit margins."

The analysts also noted NASDAQ listed ACMF's gross profit margin is currently "extremely low" at 5.64 percent, has not demonstrated a clear trend in earnings over the past 2 years, while its debt-to-equity ratio is "very high" at 2.95 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.

In August the company reported its net income increased year-on-year by 3,767.40 percent to $2.9 million, from a net loss of $79,414 for Q2 2013, following a switch from retail to wholesale business.

Ship & Bunker News Team
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