Trade-Ideas LLC identified

Bunge

(

BG

) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Bunge as such a stock due to the following factors:

  • BG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $51.3 million.
  • BG has traded 67,712 shares today.
  • BG traded in a range 220.4% of the normal price range with a price range of $2.37.
  • BG traded below its daily resistance level (quality: 11 days, meaning that the stock is crossing a resistance level set by the last 11 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on BG:

TST Recommends

Bunge Limited, through its subsidiaries, operates as an agribusiness and food company worldwide. It operates in five segments: Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer. The stock currently has a dividend yield of 1.9%. BG has a PE ratio of 23. Currently there are 2 analysts that rate Bunge a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Bunge has been 1.0 million shares per day over the past 30 days. Bunge has a market cap of $10.8 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.63 and a short float of 2.4% with 5.26 days to cover. Shares are down 12.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Bunge as a

hold

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow.

Highlights from the ratings report include:

  • The debt-to-equity ratio is somewhat low, currently at 0.65, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.43 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The share price of BUNGE LTD has not done very well: it is down 5.74% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • 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 Food Products industry. The net income has significantly decreased by 70.1% when compared to the same quarter one year ago, falling from $288.00 million to $86.00 million.

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