Trade-Ideas LLC identified

Lattice Semiconductor

(

LSCC

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

  • LSCC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.2 million.
  • LSCC has traded 672,784 shares today.
  • LSCC is trading at 3.47 times the normal volume for the stock at this time of day.
  • LSCC is trading at a new low 3.10% 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 LSCC:

Lattice Semiconductor Corporation designs, develops, and markets programmable logic products and related software in Asia, Europe, and the Americas. It offers products based on field programmable gate arrays (FPGAs) and complex programmable logic devices (CPLDs) architectures. Currently there are 4 analysts that rate Lattice Semiconductor a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Lattice Semiconductor has been 2.7 million shares per day over the past 30 days. Lattice Semiconductor has a market cap of $741.0 million and is part of the technology sector and electronics industry. The stock has a beta of 1.62 and a short float of 11.1% with 5.31 days to cover. Shares are down 1.7% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Lattice Semiconductor as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, 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 deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 9.6%. Since the same quarter one year prior, revenues rose by 26.7%. 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.
  • LSCC's debt-to-equity ratio of 1.00 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that LSCC's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.84 is high and demonstrates strong liquidity.
  • The gross profit margin for LATTICE SEMICONDUCTOR CORP is rather high; currently it is at 62.85%. Regardless of LSCC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LSCC's net profit margin of -22.66% significantly underperformed when compared to the industry average.
  • 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 Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 364.3% when compared to the same quarter one year ago, falling from $9.41 million to -$24.86 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 Semiconductors & Semiconductor Equipment industry and the overall market, LATTICE SEMICONDUCTOR CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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