Strong On High Volume: MeetMe (MEET)

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

Trade-Ideas LLC identified

MeetMe

(

MEET

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

  • MEET has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.9 million.
  • MEET has traded 131,383 shares today.
  • MEET is trading at 2.03 times the normal volume for the stock at this time of day.
  • MEET is trading at a new high 3.32% 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 MEET:

MeetMe, Inc. owns and operates a social network for meeting new people on the Web and on mobile platforms in the United States. MEET has a PE ratio of 135. Currently there are 2 analysts that rate MeetMe a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for MeetMe has been 665,200 shares per day over the past 30 days. MeetMe has a market cap of $122.8 million and is part of the technology sector and internet industry. The stock has a beta of 1.62 and a short float of 2.4% with 0.91 days to cover. Shares are up 57.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates MeetMe as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and poor profit margins.

Highlights from the ratings report include:

  • MEET's revenue growth has slightly outpaced the industry average of 15.1%. Since the same quarter one year prior, revenues rose by 23.3%. 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.
  • Although MEET's debt-to-equity ratio of 0.02 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 3.89, which clearly demonstrates the ability to cover short-term cash needs.
  • MEETME INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. 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, MEETME INC continued to lose money by earning -$0.11 versus -$0.29 in the prior year. This year, the market expects an improvement in earnings ($0.08 versus -$0.11).
  • The gross profit margin for MEETME INC is currently lower than what is desirable, coming in at 32.02%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, MEET's net profit margin of -14.22% significantly underperformed when compared to the industry average.
  • 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 Internet Software & Services industry. The net income has significantly decreased by 4015.4% when compared to the same quarter one year ago, falling from $0.05 million to -$2.04 million.

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