Strong On High Volume: Bon-Ton Stores (BONT)
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 Bon-Ton Stores as such a stock due to the following factors:
- BONT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.3 million.
- BONT has traded 94,750 shares today.
- BONT is trading at 8.07 times the normal volume for the stock at this time of day.
- BONT is trading at a new high 4.12% 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 BONT:
The Bon-Ton Stores, Inc., through its subsidiaries, operates department stores in the United States. Its stores offer brand-name fashion apparel and accessories for women, men, and children, as well as cosmetics, home furnishings, footwear, and other goods. The stock currently has a dividend yield of 4.3%. Currently there is 1 analyst that rates Bon-Ton Stores a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Bon-Ton Stores has been 193,600 shares per day over the past 30 days. Bon-Ton Stores has a market cap of $82.0 million and is part of the services sector and retail industry. The stock has a beta of 4.90 and a short float of 47.8% with 8.09 days to cover. Shares are down 20.8% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Bon-Ton Stores as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- 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 Multiline Retail industry. The net income has significantly decreased by 1082.4% when compared to the same quarter one year ago, falling from -$0.93 million to -$11.01 million.
- The debt-to-equity ratio is very high at 21.12 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.07, which clearly demonstrates the inability to cover short-term cash needs.
- 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 Multiline Retail industry and the overall market, BON-TON STORES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to -$101.54 million or 48.58% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 51.19%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1040.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- You can view the full Bon-Ton Stores Ratings Report.
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