Trade-Ideas LLC identified

magicJack VocalTec

(

CALL

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

  • CALL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.1 million.
  • CALL has traded 77,658 shares today.
  • CALL is trading at 7.10 times the normal volume for the stock at this time of day.
  • CALL is trading at a new high 6.01% 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 CALL:

magicJack VocalTec Ltd., together with its subsidiaries, operates as a cloud communications company that provides voice-over-Internet-Protocol (VoIP) services in the United States. CALL has a PE ratio of 36. Currently there are no analysts that rate magicJack VocalTec a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for magicJack VocalTec has been 275,000 shares per day over the past 30 days. magicJack VocalTec has a market cap of $145.1 million and is part of the technology sector and telecommunications industry. The stock has a beta of 1.10 and a short float of 19% with 8.48 days to cover. Shares are up 7.1% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates magicJack VocalTec as a

hold

. The company's strengths can be seen in multiple areas, such as its 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:

  • CALL's debt-to-equity ratio is very low at 0.03 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.09, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for MAGICJACK VOCALTEC LTD is rather high; currently it is at 66.87%. Regardless of CALL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 5.12% trails the industry average.
  • CALL, with its decline in revenue, underperformed when compared the industry average of 5.3%. Since the same quarter one year prior, revenues fell by 27.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Net operating cash flow has decreased to $7.53 million or 46.91% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • 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 Diversified Telecommunication Services industry and the overall market, MAGICJACK VOCALTEC LTD's return on equity significantly trails that of both the industry average and the S&P 500.

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