Trade-Ideas LLC identified

Haemonetics

(

HAE

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

  • HAE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.5 million.
  • HAE has traded 128,057 shares today.
  • HAE is trading at 6.96 times the normal volume for the stock at this time of day.
  • HAE is trading at a new low 5.17% 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 HAE:

Haemonetics Corporation designs, manufactures, and markets blood management solutions. The company operates through North America Plasma, North America Blood Center and Hospital, Europe, Asia Pacific, and Japan segments. HAE has a PE ratio of 88. Currently there are 3 analysts that rate Haemonetics a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Haemonetics has been 291,900 shares per day over the past 30 days. Haemonetics has a market cap of $1.7 billion and is part of the health care sector and health services industry. The stock has a beta of 0.87 and a short float of 5.5% with 9.30 days to cover. Shares are down 10.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Haemonetics as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 92.7% when compared to the same quarter one year prior, rising from -$3.65 million to -$0.27 million.
  • The current debt-to-equity ratio, 0.55, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.48, which illustrates the ability to avoid short-term cash problems.
  • HAEMONETICS CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HAEMONETICS CORP reported lower earnings of $0.32 versus $0.67 in the prior year. This year, the market expects an improvement in earnings ($2.04 versus $0.32).
  • Net operating cash flow has decreased to $9.25 million or 32.66% 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's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, HAEMONETICS CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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