Strong On High Relative Volume: Mitel Networks (MITL)

Trade-Ideas LLC identified Mitel Networks (MITL) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Mitel Networks

(

MITL

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

  • MITL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.5 million.
  • MITL has traded 211,494 shares today.
  • MITL is trading at 16.32 times the normal volume for the stock at this time of day.
  • MITL is trading at a new high 12.03% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in MITL with the Ticky from Trade-Ideas. See the FREE profile for MITL NOW at Trade-Ideas

More details on MITL:

Mitel Networks Corporation provides business communications and collaboration software and services worldwide. MITL has a PE ratio of 74. Currently there are 4 analysts that rate Mitel Networks a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Mitel Networks has been 444,300 shares per day over the past 30 days. Mitel has a market cap of $927.4 million and is part of the technology sector and telecommunications industry. The stock has a beta of 2.91 and a short float of 6.5% with 11.63 days to cover. Shares are down 28.4% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Mitel Networks as a

hold

. The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and generally higher debt management risk.

Highlights from the ratings report include:

  • The gross profit margin for MITEL NETWORKS CORP is rather high; currently it is at 56.27%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -4.18% is in-line with the industry average.
  • Compared to other companies in the Communications Equipment industry and the overall market on the basis of return on equity, MITEL NETWORKS CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • 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 Communications Equipment industry. The net income has significantly decreased by 1550.0% when compared to the same quarter one year ago, falling from $0.80 million to -$11.60 million.
  • Net operating cash flow has significantly decreased to -$1.90 million or 107.36% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

Loading ...