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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 or Stephanie Link.

Trade-Ideas LLC identified

Amira Nature Foods

(

ANFI

) as a weak 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 $3.8 million.
  • ANFI has traded 167,718 shares today.
  • ANFI is trading at 5.01 times the normal volume for the stock at this time of day.
  • ANFI is trading at a new low 3.22% 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 ANFI:

TheStreet Recommends

Amira Nature Foods Ltd is engaged in processing, distributing, and marketing packaged specialty rice and other food products. ANFI has a PE ratio of 8.7. Currently there is 1 analyst that rates Amira Nature Foods a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Amira Nature Foods has been 188,600 shares per day over the past 30 days. Amira Nature has a market cap of $300.8 million and is part of the consumer goods sector and food & beverage industry. The stock has a beta of -0.59 and a short float of 31.4% with 15.17 days to cover. Shares are down 37.8% year-to-date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Amira Nature Foods as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 1.8%. Since the same quarter one year prior, revenues rose by 30.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • AMIRA NATURE FOODS LTD reported significant earnings per share improvement 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 year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, AMIRA NATURE FOODS LTD increased its bottom line by earning $1.05 versus $0.44 in the prior year. This year, the market expects an improvement in earnings ($1.35 versus $1.05).
  • 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 Food Products industry and the overall market on the basis of return on equity, AMIRA NATURE FOODS LTD has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • Net operating cash flow has significantly decreased to -$3.31 million or 177.55% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The debt-to-equity ratio of 1.11 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 0.52, this demonstrates the lack of ability of the company to cover short-term liquidity needs.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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