Trade-Ideas LLC identified

Amira Nature Foods

(

ANFI

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

  • ANFI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.8 million.
  • ANFI has traded 103,829 shares today.
  • ANFI is trading at 2.07 times the normal volume for the stock at this time of day.
  • ANFI is trading at a new high 9.02% 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 ANFI:

Amira Nature Foods Ltd is engaged in processing, distributing, and marketing packaged specialty rice and other food products. ANFI has a PE ratio of 3. Currently there are no analysts that rate Amira Nature Foods a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Amira Nature Foods has been 608,900 shares per day over the past 30 days. Amira Nature has a market cap of $114.1 million and is part of the consumer goods sector and food & beverage industry. The stock has a beta of -0.44 and a short float of 27.5% with 2.22 days to cover. Shares are down 72.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Amira Nature Foods as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • The debt-to-equity ratio of 1.10 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, ANFI has a quick ratio of 0.66, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • The gross profit margin for AMIRA NATURE FOODS LTD is rather low; currently it is at 17.19%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 6.22% is above that of the industry average.
  • ANFI'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 78.37%, 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.
  • AMIRA NATURE FOODS LTD has improved earnings per share by 6.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, AMIRA NATURE FOODS LTD increased its bottom line by earning $1.41 versus $1.05 in the prior year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Food Products industry average. The net income increased by 5.6% when compared to the same quarter one year prior, going from $13.37 million to $14.13 million.

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