Trade-Ideas LLC identified

Altisource Portfolio Solutions

(

ASPS

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

  • ASPS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.2 million.
  • ASPS has traded 215,500 shares today.
  • ASPS is trading at 10.52 times the normal volume for the stock at this time of day.
  • ASPS is trading at a new low 9.13% 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.

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More details on ASPS:

Altisource Portfolio Solutions S.A. operates as a marketplace and transaction solutions provider for the real estate, mortgage, and consumer debt industries in the United States. ASPS has a PE ratio of 8. Currently there is 1 analyst that rates Altisource Portfolio Solutions a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Altisource Portfolio Solutions has been 535,100 shares per day over the past 30 days. Altisource has a market cap of $688.8 million and is part of the services sector and diversified services industry. The stock has a beta of 1.64 and a short float of 29.8% with 4.53 days to cover. Shares are up 23.7% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Altisource Portfolio Solutions as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 57.29% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • 38.76% is the gross profit margin for ALTISOURCE PORTFOLIO SOLTNS which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.58% is above that of the industry average.
  • ASPS, with its decline in revenue, underperformed when compared the industry average of 19.2%. Since the same quarter one year prior, revenues slightly dropped by 5.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The company, on the basis of change in net income from the same quarter one year ago, has outperformed that of the Real Estate Management & Development industry, but is equivalent to that of the S&P 500. The net income has decreased by 12.4% when compared to the same quarter one year ago, dropping from $42.29 million to $37.05 million.
  • The debt-to-equity ratio is very high at 5.84 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, ASPS has managed to keep a strong quick ratio of 2.42, which demonstrates the ability to cover short-term cash needs.

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