Trade-Ideas LLC identified

MaxLinear

(

MXL

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

  • MXL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.7 million.
  • MXL has traded 2.3 million shares today.
  • MXL is trading at 34.33 times the normal volume for the stock at this time of day.
  • MXL is trading at a new low 18.04% 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.

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More details on MXL:

MaxLinear, Inc. provides integrated, radio-frequency (RF) and mixed-signal circuits for broadband communication and data center, metro, and long-haul transport network applications worldwide. Currently there are 5 analysts that rate MaxLinear a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for MaxLinear has been 1.1 million shares per day over the past 30 days. MaxLinear has a market cap of $1.4 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.39 and a short float of 8% with 4.29 days to cover. Shares are up 48.1% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates MaxLinear as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, increase in net income and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:

  • MXL's very impressive revenue growth greatly exceeded the industry average of 14.8%. Since the same quarter one year prior, revenues leaped by 190.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • MXL 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 this, the company maintains a quick ratio of 3.02, which clearly demonstrates the ability to cover short-term cash needs.
  • Powered by its strong earnings growth of 341.66% and other important driving factors, this stock has surged by 99.36% 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, MXL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 504.8% when compared to the same quarter one year prior, rising from -$4.72 million to $19.12 million.
  • Net operating cash flow has significantly increased by 933.81% to $38.95 million when compared to the same quarter last year. In addition, MAXLINEAR INC has also vastly surpassed the industry average cash flow growth rate of -63.40%.

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