Trade-Ideas LLC identified

Och-Ziff Capital Management Group

(

OZM

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

  • OZM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.1 million.
  • OZM has traded 2.5 million shares today.
  • OZM is trading at 38.57 times the normal volume for the stock at this time of day.
  • OZM is trading at a new low 22.11% 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 OZM:

Och-Ziff Capital Management Group LLC is a publicly owned hedge fund sponsor. The firm provides investment advisory services for its clients. It invests in equity markets across the world. The firm makes its investments in alternative markets across the world. The stock currently has a dividend yield of 9.7%. OZM has a PE ratio of 29. Currently there are 5 analysts that rate Och-Ziff Capital Management Group a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Och-Ziff Capital Management Group has been 1.0 million shares per day over the past 30 days. Och-Ziff Capital Management Group has a market cap of $2.0 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.26 and a short float of 1.4% with 0.93 days to cover. Shares are down 40.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Och-Ziff Capital Management Group as a

sell

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

Highlights from the ratings report include:

  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 65.59%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 125.53% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • 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 Capital Markets industry. The net income has significantly decreased by 126.3% when compared to the same quarter one year ago, falling from $84.68 million to -$22.31 million.
  • Net operating cash flow has significantly decreased to $30.08 million or 77.65% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • OCH-ZIFF CAPITAL MGMT LLC 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, OCH-ZIFF CAPITAL MGMT LLC reported lower earnings of $0.11 versus $0.75 in the prior year. This year, the market expects an improvement in earnings ($0.70 versus $0.11).
  • OZM, with its very weak revenue results, has greatly underperformed against the industry average of 1.8%. Since the same quarter one year prior, revenues plummeted by 50.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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