Jarden (JAH) Showing Signs Of Being Water-Logged And Getting Wetter

Trade-Ideas LLC identified Jarden (JAH) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Jarden

(

JAH

) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Jarden as such a stock due to the following factors:

  • JAH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $107.4 million.
  • JAH has traded 2.6 million shares today.
  • JAH traded in a range 276.4% of the normal price range with a price range of $2.95.
  • JAH traded below its daily resistance level (quality: 358 days, meaning that the stock is crossing a resistance level set by the last 358 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on JAH:

Jarden Corporation manufactures, markets, and distributes consumer products worldwide. JAH has a PE ratio of 39. Currently there are 14 analysts that rate Jarden a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Jarden has been 2.7 million shares per day over the past 30 days. Jarden has a market cap of $10.0 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.01 and a short float of 4.9% with 3.56 days to cover. Shares are down 3.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Jarden as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and generally higher debt management risk.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.7%. Since the same quarter one year prior, revenues slightly increased by 5.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • JARDEN CORP' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, JARDEN CORP increased its bottom line by earning $1.29 versus $1.21 in the prior year. This year, the market expects an improvement in earnings ($2.73 versus $1.29).
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Household Durables industry and the overall market, JARDEN CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Net operating cash flow has significantly decreased to $42.60 million or 65.78% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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