Olin (OLN) Is Today's Strong On High Volume Stock

Trade-Ideas LLC identified Olin (OLN) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Olin

(

OLN

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Olin as such a stock due to the following factors:

  • OLN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $72.6 million.
  • OLN has traded 723,426 shares today.
  • OLN is trading at 6.66 times the normal volume for the stock at this time of day.
  • OLN is trading at a new high 4.00% 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 OLN:

Olin Corporation manufactures and sells chlor alkali products in the United States and internationally. The company operates through three segments: Chlor Alkali Products, Chemical Distribution, and Winchester. The stock currently has a dividend yield of 4.2%. OLN has a PE ratio of 16. Currently there are 4 analysts that rate Olin a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Olin has been 3.8 million shares per day over the past 30 days. Olin has a market cap of $1.5 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.35 and a short float of 32.4% with 5.62 days to cover. Shares are down 14.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Olin as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Chemicals industry average. The net income increased by 13.4% when compared to the same quarter one year prior, going from $37.30 million to $42.30 million.
  • The debt-to-equity ratio is somewhat low, currently at 0.64, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.09, which illustrates the ability to avoid short-term cash problems.
  • Despite the weak revenue results, OLN has outperformed against the industry average of 19.1%. Since the same quarter one year prior, revenues slightly dropped by 6.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for OLIN CORP is rather low; currently it is at 21.59%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 7.90% trails that of the industry average.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Chemicals industry and the overall market, OLIN CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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