Carmike Cinemas (CKEC) Weak On High Volume
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.
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Carmike Cinemas as such a stock due to the following factors:
- CKEC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.9 million.
- CKEC has traded 75,154 shares today.
- CKEC is trading at 11.86 times the normal volume for the stock at this time of day.
- CKEC is trading at a new low 5.15% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 CKEC:
Carmike Cinemas, Inc., together with its subsidiaries, operates as a motion picture exhibitor in the United States. The company operates digital cinema and 3-D cinema theatres that show films on a first-run basis; and discount theatres primarily serving small to mid-size non-urban markets. Currently there are 7 analysts that rate Carmike Cinemas a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Carmike Cinemas has been 243,400 shares per day over the past 30 days. Carmike Cinemas has a market cap of $763.1 million and is part of the services sector and media industry. The stock has a beta of 1.20 and a short float of 5.3% with 5.23 days to cover. Shares are up 19% year-to-date as of the close of trading on Monday.
Analysis:
rates Carmike Cinemas as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.
Highlights from the ratings report include:
- CKEC, with its decline in revenue, slightly underperformed the industry average of 6.5%. Since the same quarter one year prior, revenues slightly dropped by 0.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Despite the current debt-to-equity ratio of 1.57, it is still below the industry average, suggesting that this level of debt is acceptable within the Media industry. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.13 is sturdy.
- In its most recent trading session, CKEC 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. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- The gross profit margin for CARMIKE CINEMAS INC is rather low; currently it is at 15.08%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -4.15% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$8.84 million or 705.75% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full Carmike Cinemas Ratings Report.
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