BlackBerry (BBRY) Strong On High Relative Volume Today
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified BlackBerry as such a stock due to the following factors:
- BBRY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $38.6 million.
- BBRY has traded 1.6 million shares today.
- BBRY is trading at 3.72 times the normal volume for the stock at this time of day.
- BBRY is trading at a new high 4.08% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on BBRY:
BlackBerry Limited provides wireless communications solutions worldwide. Currently there are 4 analysts that rate BlackBerry a buy, 2 analysts rate it a sell, and 13 rate it a hold.
The average volume for BlackBerry has been 6.3 million shares per day over the past 30 days. BlackBerry has a market cap of $4.0 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 0.82 and a short float of 4.9% with 15.96 days to cover. Shares are down 30.8% year-to-date as of the close of trading on Thursday.
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Analysis:
rates BlackBerry as a
. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- Net operating cash flow has declined marginally to $110.00 million or 4.34% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, BLACKBERRY LTD has marginally lower results.
- BBRY's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 32.26%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Computers & Peripherals industry and the overall market, BLACKBERRY LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- The revenue fell significantly faster than the industry average of 25.3%. Since the same quarter one year prior, revenues fell by 46.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The gross profit margin for BLACKBERRY LTD is rather high; currently it is at 60.29%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, BBRY's net profit margin of 10.38% significantly trails the industry average.
- You can view the full BlackBerry Ratings Report.
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