General Cable (BGC) Flagged As Strong On High Volume - TheStreet

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

General Cable

(

BGC

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

  • BGC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.8 million.
  • BGC has traded 61,690 shares today.
  • BGC is trading at 2.15 times the normal volume for the stock at this time of day.
  • BGC is trading at a new high 3.03% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 BGC:

General Cable Corporation designs, develops, manufactures, markets, and distributes copper, aluminum, and fiber optic wire and cable products for the energy, industrial, construction, specialty, and communications markets worldwide. The stock currently has a dividend yield of 5.3%. Currently there are 3 analysts that rate General Cable a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for General Cable has been 961,600 shares per day over the past 30 days. General Cable has a market cap of $656.2 million and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.76 and a short float of 9.6% with 4.46 days to cover. Shares are down 52.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates General Cable as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • 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 Electrical Equipment industry. The net income has significantly decreased by 398.8% when compared to the same quarter one year ago, falling from $8.30 million to -$24.80 million.
  • Currently the debt-to-equity ratio of 1.72 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with the unfavorable debt-to-equity ratio, BGC maintains a poor quick ratio of 0.89, which illustrates the inability to avoid short-term cash problems.
  • 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 Electrical Equipment industry and the overall market, GENERAL CABLE CORP/DE's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for GENERAL CABLE CORP/DE is currently extremely low, coming in at 10.74%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.61% trails that of the industry average.
  • Net operating cash flow has significantly decreased to -$74.80 million or 708.13% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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