Youku Tudou (YOKU) Stock: Weak On High Volume Today
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.
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Youku Tudou as such a stock due to the following factors:
- YOKU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.1 million.
- YOKU has traded 842,028 shares today.
- YOKU is trading at 16.70 times the normal volume for the stock at this time of day.
- YOKU is trading at a new low 7.06% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 YOKU with the Ticky from Trade-Ideas. See the FREE profile for YOKU NOW at Trade-Ideas
More details on YOKU:
Youku Tudou Inc. operates as an Internet television company in the People's Republic of China. Its Internet television platform enables consumers to search, view, and share video content across various devices. Currently there are 3 analysts that rate Youku Tudou a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Youku Tudou has been 1.5 million shares per day over the past 30 days. Youku Tudou has a market cap of $3.1 billion and is part of the technology sector and internet industry. Shares are down 14.9% year-to-date as of the close of trading on Thursday.
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.
Analysis:
rates Youku Tudou as a
. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Highlights from the ratings report include:
- The gross profit margin for YOUKU TUDOU INC is rather low; currently it is at 22.24%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -16.50% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$41.17 million or 307.63% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- YOKU's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 49.37%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- YOUKU TUDOU INC has improved earnings per share by 31.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, YOUKU TUDOU INC reported poor results of -$0.58 versus -$0.52 in the prior year. For the next year, the market is expecting a contraction of 591.4% in earnings (-$4.01 versus -$0.58).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Internet Software & Services industry average, but is greater than that of the S&P 500. The net income increased by 15.8% when compared to the same quarter one year prior, going from -$35.88 million to -$30.22 million.
- You can view the full Youku Tudou Ratings Report.
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.
null