Trade-Ideas LLC identified

Media General

(

MEG

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

  • MEG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $19.5 million.
  • MEG has traded 180,020 shares today.
  • MEG is trading at 5.24 times the normal volume for the stock at this time of day.
  • MEG is trading at a new high 4.10% 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 MEG:

Media General, Inc. owns and operates television stations in the United States. It operates through two segments, Broadcast and Digital. As of November 19, 2015, it owned, operated, or serviced 71 television stations in 48 markets. Currently there are 2 analysts that rate Media General a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Media General has been 1.5 million shares per day over the past 30 days. Media General has a market cap of $2.0 billion and is part of the services sector and media industry. The stock has a beta of 1.58 and a short float of 12.3% with 8.94 days to cover. Shares are down 8.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Media General as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • 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 Media industry. The net income has significantly decreased by 462.0% when compared to the same quarter one year ago, falling from $13.40 million to -$48.49 million.
  • 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 Media industry and the overall market on the basis of return on equity, MEDIA GENERAL INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • Net operating cash flow has declined marginally to $39.11 million or 3.53% 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.
  • The share price of MEDIA GENERAL INC has not done very well: it is down 8.48% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • MEDIA GENERAL INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, MEDIA GENERAL INC turned its bottom line around by earning $0.58 versus -$0.10 in the prior year. For the next year, the market is expecting a contraction of 131.0% in earnings (-$0.18 versus $0.58).

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