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Trade-Ideas LLC identified

Cott

(

COT

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

  • COT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.3 million.
  • COT has traded 116,533 shares today.
  • COT is trading at 3.08 times the normal volume for the stock at this time of day.
  • COT is trading at a new low 4.02% 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 COT:

TheStreet Recommends

Cott Corporation, together with its subsidiaries, produces and sells beverages on behalf of retailers, brand owners, and distributors worldwide. The stock currently has a dividend yield of 2.3%. COT has a PE ratio of 57. Currently there are 4 analysts that rate Cott a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Cott has been 676,600 shares per day over the past 30 days. Cott has a market cap of $1.1 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 1.14 and a short float of 0.8% with 0.47 days to cover. Shares are up 51.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cott as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 11.4%. Since the same quarter one year prior, revenues rose by 41.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Beverages industry. The net income increased by 269.2% when compared to the same quarter one year prior, rising from $1.30 million to $4.80 million.
  • Net operating cash flow has significantly increased by 51.73% to $91.80 million when compared to the same quarter last year. In addition, COTT CORP QUE has also vastly surpassed the industry average cash flow growth rate of -7.71%.
  • 38.46% is the gross profit margin for COTT CORP QUE which we consider to be strong. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, COT's net profit margin of 0.63% significantly trails the industry average.
  • Powered by its strong earnings growth of 300.00% and other important driving factors, this stock has surged by 64.48% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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