Trade-Ideas LLC identified

Chimera Investment

(

CIM

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

  • CIM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $39.2 million.
  • CIM has traded 220,737 shares today.
  • CIM is trading at 3.07 times the normal volume for the stock at this time of day.
  • CIM is trading at a new low 4.01% 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 CIM with the Ticky from Trade-Ideas. See the FREE profile for CIM NOW at Trade-Ideas

More details on CIM:

Chimera Investment Corporation operates as a real estate investment trust in the United States. The stock currently has a dividend yield of 13.2%. CIM has a PE ratio of 22. Currently there is 1 analyst that rates Chimera Investment a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Chimera Investment has been 1.6 million shares per day over the past 30 days. Chimera Investment has a market cap of $2.7 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.66 and a short float of 1.9% with 1.25 days to cover. Shares are down 8.9% year-to-date as of the close of trading on Monday.

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 Chimera Investment as a

hold

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and expanding profit margins. 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 CHIMERA INVESTMENT CORP is currently very high, coming in at 75.81%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, CIM's net profit margin of -27.66% significantly underperformed when compared to the industry average.
  • 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 Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 112.8% when compared to the same quarter one year ago, falling from $377.58 million to -$48.26 million.
  • 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. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, CHIMERA INVESTMENT CORP's return on equity is below that of both the industry average and the S&P 500.

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.