Trade-Ideas LLC identified

E W Scripps

(

SSP

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

  • SSP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.8 million.
  • SSP has traded 68,532 shares today.
  • SSP is trading at 2.41 times the normal volume for the stock at this time of day.
  • SSP is trading at a new low 3.07% 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 SSP:

The E. W. Scripps Company, together with its subsidiaries, operates as a media enterprise with interests in television stations, newspapers, and local and national digital media sites. SSP has a PE ratio of 1709. Currently there are 4 analysts that rate E W Scripps a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for E W Scripps has been 479,400 shares per day over the past 30 days. E W Scripps has a market cap of $1.2 billion and is part of the services sector and media industry. The stock has a beta of 1.82 and a short float of 11.6% with 7.10 days to cover. Shares are down 19.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates E W Scripps 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 solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and poor profit margins.

Highlights from the ratings report include:

  • SSP's very impressive revenue growth greatly exceeded the industry average of 6.4%. Since the same quarter one year prior, revenues leaped by 65.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The current debt-to-equity ratio, 0.44, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 3.08, which clearly demonstrates the ability to cover short-term cash needs.
  • After a year of stock price fluctuations, the net result is that SSP's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • Net operating cash flow has significantly decreased to -$62.95 million or 679.93% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 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 Media industry. The net income has significantly decreased by 870.7% when compared to the same quarter one year ago, falling from -$3.24 million to -$31.40 million.

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