Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) 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 Diebold as such a stock due to the following factors:
- DBD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $35.1 million.
- DBD has traded 129,432 shares today.
- DBD traded in a range 245.8% of the normal price range with a price range of $1.74.
- DBD traded below its daily resistance level (quality: 17 days, meaning that the stock is crossing a resistance level set by the last 17 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.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in DBD with the Ticky from Trade-Ideas. See the FREE profile for DBD NOW at Trade-Ideas
More details on DBD:
Diebold, Incorporated provides integrated self-service delivery and security systems and services primarily to the financial, commercial, retail, and other markets worldwide. The stock currently has a dividend yield of 2.9%. Currently there is 1 analyst that rates Diebold a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for Diebold has been 896,800 shares per day over the past 30 days. Diebold has a market cap of $2.5 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.16 and a short float of 16.6% with 9.89 days to cover. Shares are up 18% year-to-date as of the close of trading on Friday.
rates Diebold as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.
Highlights from the ratings report include:
- Compared to its closing price of one year ago, DBD's share price has jumped by 32.35%, exceeding the performance of the broader market during that same time frame. Although DBD had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- Net operating cash flow has increased to $183.27 million or 11.56% when compared to the same quarter last year. In addition, DIEBOLD INC has also modestly surpassed the industry average cash flow growth rate of 7.56%.
- DBD, with its decline in revenue, slightly underperformed the industry average of 4.1%. Since the same quarter one year prior, revenues slightly dropped by 3.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- 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 Computers & Peripherals industry. The net income has significantly decreased by 249.4% when compared to the same quarter one year ago, falling from -$11.86 million to -$41.43 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. Compared to other companies in the Computers & Peripherals industry and the overall market, DIEBOLD INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Diebold Ratings Report.