Trade-Ideas LLC identified

Blucora

(

BCOR

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

  • BCOR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.8 million.
  • BCOR has traded 144,992 shares today.
  • BCOR is trading at 6.74 times the normal volume for the stock at this time of day.
  • BCOR is trading at a new low 10.05% 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 BCOR:

TheStreet Recommends

Blucora, Inc. operates a portfolio of Internet businesses in the Unites States and internationally. It operates through three segments: Search and Content, Tax Preparation, and E-Commerce. Currently there is 1 analyst that rates Blucora a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Blucora has been 395,000 shares per day over the past 30 days. Blucora has a market cap of $453.9 million and is part of the technology sector and internet industry. The stock has a beta of 0.60 and a short float of 8.5% with 4.30 days to cover. Shares are down 19.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Blucora as a

hold

. The company's strengths can be seen in multiple areas, such as its expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • The gross profit margin for BLUCORA INC is rather high; currently it is at 54.75%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, BCOR's net profit margin of 3.57% significantly trails the industry average.
  • Despite currently having a low debt-to-equity ratio of 0.40, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 5.26 is very high and demonstrates very strong liquidity.
  • BCOR, with its decline in revenue, underperformed when compared the industry average of 10.2%. Since the same quarter one year prior, revenues fell by 15.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, BLUCORA INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $6.50 million or 24.88% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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