Trade-Ideas: Boston Beer (SAM) Is Today's Strong On High Relative Volume Stock

Trade-Ideas LLC identified Boston Beer (SAM) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Boston Beer

(

SAM

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

  • SAM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.6 million.
  • SAM has traded 102,898 shares today.
  • SAM is trading at 26.53 times the normal volume for the stock at this time of day.
  • SAM is trading at a new high 11.02% 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 SAM:

The Boston Beer Company, Inc. produces and sells alcohol beverages primarily in the United States. The company's flagship beer is Samuel Adams Boston Lager. SAM has a PE ratio of 23. Currently there are no analysts that rate Boston Beer a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Boston Beer has been 148,500 shares per day over the past 30 days. Boston Beer has a market cap of $2.1 billion and is part of the consumer goods sector and food & beverage industry. Shares are down 18.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Boston Beer as a

hold

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

Highlights from the ratings report include:

  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Beverages industry and the overall market, BOSTON BEER INC's return on equity exceeds that of both the industry average and the S&P 500.
  • SAM's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 1.00 is somewhat weak and could be cause for future problems.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Beverages industry. The net income has significantly decreased by 48.8% when compared to the same quarter one year ago, falling from $13.74 million to $7.03 million.
  • Net operating cash flow has significantly decreased to $6.27 million or 70.47% 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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