Trade-Ideas LLC identified

BanColombia

(

CIB

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

  • CIB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.2 million.
  • CIB has traded 183,327 shares today.
  • CIB is trading at 3.16 times the normal volume for the stock at this time of day.
  • CIB is trading at a new low 3.01% 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 CIB with the Ticky from Trade-Ideas. See the FREE profile for CIB NOW at Trade-Ideas

More details on CIB:

Bancolombia S.A. provides various banking products and services to individual, corporate, and government customers. The stock currently has a dividend yield of 3.2%. Currently there are no analysts that rate BanColombia a buy, 2 analysts rate it a sell, and 4 rate it a hold.

The average volume for BanColombia has been 383,400 shares per day over the past 30 days. BanColombia has a market cap of $8.6 billion and is part of the financial sector and banking industry. Shares are up 30.5% year-to-date as of the close of trading on Tuesday.

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.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates BanColombia as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 1.8%. Since the same quarter one year prior, revenues rose by 44.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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 Commercial Banks industry and the overall market, BANCOLOMBIA SA's return on equity exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for BANCOLOMBIA SA is rather high; currently it is at 58.90%. Regardless of CIB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 15.96% trails the industry average.
  • BANCOLOMBIA SA reported significant earnings per share improvement 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, BANCOLOMBIA SA reported lower earnings of $7.02 versus $7.07 in the prior year. For the next year, the market is expecting a contraction of 54.3% in earnings ($3.21 versus $7.02).
  • CIB has underperformed the S&P 500 Index, declining 21.89% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

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.