Trade-Ideas LLC identified

Cheetah Mobile

(

CMCM

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

  • CMCM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.2 million.
  • CMCM has traded 205,816 shares today.
  • CMCM is trading at 4.31 times the normal volume for the stock at this time of day.
  • CMCM is trading at a new low 7.02% 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 CMCM:

Cheetah Mobile Inc. operates a platform that offer mobile and PC applications for users and global content distribution channels for business partners in China. CMCM has a PE ratio of 55. Currently there is 1 analyst that rates Cheetah Mobile a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Cheetah Mobile has been 1.4 million shares per day over the past 30 days. Cheetah Mobile has a market cap of $2.3 billion and is part of the technology sector and computer software & services industry. Shares are up 4.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cheetah Mobile as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:

  • CMCM's very impressive revenue growth greatly exceeded the industry average of 10.1%. Since the same quarter one year prior, revenues leaped by 129.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CMCM's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, CMCM has a quick ratio of 1.73, which demonstrates the ability of the company to cover short-term liquidity needs.
  • When compared to other companies in the Software industry and the overall market, CHEETAH MOBILE INC -ADR's return on equity is below that of both the industry average and the S&P 500.
  • The gross profit margin for CHEETAH MOBILE INC -ADR is currently very high, coming in at 74.44%. Regardless of CMCM's high profit margin, it has managed to decrease from the same period last year.
  • CMCM has underperformed the S&P 500 Index, declining 23.83% from its price level of one year ago. 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.

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