Globalstar (GSAT) Is Today's Strong On High Volume Stock
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 strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Globalstar as such a stock due to the following factors:
- GSAT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.4 million.
- GSAT has traded 673,044 shares today.
- GSAT is trading at 2.92 times the normal volume for the stock at this time of day.
- GSAT is trading at a new high 3.08% 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 GSAT:
Globalstar, Inc. provides mobile voice and data communications services through satellite worldwide.
The average volume for Globalstar has been 2.7 million shares per day over the past 30 days. Globalstar has a market cap of $2.2 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 4.29 and a short float of 17.9% with 18.46 days to cover. Shares are down 5.5% year-to-date as of the close of trading on Tuesday.
Analysis:
rates Globalstar as a
. The area that we feel has been the company's primary weakness has been its feeble growth in its earnings per share.
Highlights from the ratings report include:
- Compared to where it was a year ago today, the stock is now trading at a higher level, and has traded in line with the S&P 500. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
- GLOBALSTAR INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, GLOBALSTAR INC continued to lose money by earning -$0.58 versus -$0.96 in the prior year. This year, the market expects an improvement in earnings (-$0.12 versus -$0.58).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Diversified Telecommunication Services industry. The net income increased by 139.2% when compared to the same quarter one year prior, rising from -$234.80 million to $92.02 million.
- GSAT's revenue growth has slightly outpaced the industry average of 2.6%. Since the same quarter one year prior, revenues slightly increased by 5.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- You can view the full Globalstar Ratings Report.
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