Trade-Ideas LLC identified

Insteel Industries

(

IIIN

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

  • IIIN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.6 million.
  • IIIN has traded 133,929 shares today.
  • IIIN is trading at 21.85 times the normal volume for the stock at this time of day.
  • IIIN is trading at a new low 10.04% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in IIIN with the Ticky from Trade-Ideas. See the FREE profile for IIIN NOW at Trade-Ideas

More details on IIIN:

Insteel Industries, Inc., together with its subsidiaries, manufactures and markets steel wire reinforcing products for concrete construction applications. The company markets pre-stressed concrete strand (PC strand) and welded wire reinforcement (WWR). The stock currently has a dividend yield of 0.4%. IIIN has a PE ratio of 24.

The average volume for Insteel Industries has been 156,300 shares per day over the past 30 days. Insteel has a market cap of $583.1 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of 1.58 and a short float of 1.9% with 1.34 days to cover. Shares are up 46% year-to-date as of the close of trading on Thursday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Insteel Industries as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • Powered by its strong earnings growth of 63.63% and other important driving factors, this stock has surged by 45.40% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, IIIN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • INSTEEL INDUSTRIES reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, INSTEEL INDUSTRIES increased its bottom line by earning $1.16 versus $0.89 in the prior year. This year, the market expects an improvement in earnings ($1.79 versus $1.16).
  • IIIN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.38, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has significantly increased by 230.25% to $12.39 million when compared to the same quarter last year. In addition, INSTEEL INDUSTRIES has also vastly surpassed the industry average cash flow growth rate of 21.06%.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.