Trade-Ideas LLC identified

Build-A-Bear Workshop

(

BBW

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Build-A-Bear Workshop as such a stock due to the following factors:

  • BBW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.0 million.
  • BBW has traded 78,262 shares today.
  • BBW is trading at 2.44 times the normal volume for the stock at this time of day.
  • BBW is trading at a new high 4.09% 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 BBW:

Build-A-Bear Workshop, Inc. operates as a specialty retailer of plush animals and related products. It operates in three segments: Retail, International Franchising, and Commercial. BBW has a PE ratio of 11. Currently there are 3 analysts that rate Build-A-Bear Workshop a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Build-A-Bear Workshop has been 263,700 shares per day over the past 30 days. Build-A-Bear Workshop has a market cap of $200.9 million and is part of the services sector and specialty retail industry. The stock has a beta of 0.42 and a short float of 8.7% with 5.30 days to cover. Shares are down 38.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Build-A-Bear Workshop as a

hold

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The gross profit margin for BUILD-A-BEAR WORKSHOP INC is rather high; currently it is at 50.20%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 1.24% trails the industry average.
  • Net operating cash flow has slightly increased to $4.93 million or 1.86% when compared to the same quarter last year. Despite an increase in cash flow, BUILD-A-BEAR WORKSHOP INC's cash flow growth rate is still lower than the industry average growth rate of 19.64%.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 38.38%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 40.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Specialty Retail industry. The net income has significantly decreased by 41.4% when compared to the same quarter one year ago, falling from $1.82 million to $1.07 million.

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