Strong On High Relative Volume: Companhia Siderurgica Nacional (SID)

Trade-Ideas LLC identified Companhia Siderurgica Nacional (SID) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Companhia Siderurgica Nacional

(

SID

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

  • SID has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.6 million.
  • SID has traded 717,696 shares today.
  • SID is trading at 8.91 times the normal volume for the stock at this time of day.
  • SID is trading at a new high 19.20% 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 SID:

Companhia Siderurgica Nacional produces steel. The company operates through five segments including steel, mining, cement, logistics, and energy. The stock currently has a dividend yield of 10.9%. SID has a PE ratio of 9. Currently there are no analysts that rate Companhia Siderurgica Nacional a buy, 2 analysts rate it a sell, and none rate it a hold.

The average volume for Companhia Siderurgica Nacional has been 1.6 million shares per day over the past 30 days. Companhia Siderurgica Nacional has a market cap of $1.8 billion and is part of the basic materials sector and metals & mining industry. Shares are down 39.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Companhia Siderurgica Nacional as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • COMPANHIA SIDERURGICA NACION's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, COMPANHIA SIDERURGICA NACION swung to a loss, reporting -$0.16 versus $0.15 in the prior year. For the next year, the market is expecting a contraction of 378.1% in earnings (-$0.77 versus -$0.16).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 1963.8% when compared to the same quarter one year ago, falling from $10.44 million to -$194.56 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, COMPANHIA SIDERURGICA NACION's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for COMPANHIA SIDERURGICA NACION is currently lower than what is desirable, coming in at 30.21%. It has decreased from the same quarter the previous year.
  • Net operating cash flow has significantly decreased to -$193.77 million or 191.70% 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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