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

  • QIWI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.1 million.
  • QIWI has traded 106,256 shares today.
  • QIWI is trading at 4.17 times the normal volume for the stock at this time of day.
  • QIWI is trading at a new low 8.26% 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 QIWI: Qiwi plc, together with its subsidiaries, operates electronic online payment systems primarily in the Russian Federation, Kazakhstan, Moldova, Belarus, Romania, and the United Arab Emirates. The stock currently has a dividend yield of 5.8%. QIWI has a PE ratio of 1. Currently there are no analysts that rate QIWI a buy, no analysts rate it a sell, and 3 rate it a hold. The average volume for QIWI has been 398,000 shares per day over the past 30 days. QIWI has a market cap of $723.2 million and is part of the financial sector and financial services industry. Shares are down 31.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates QIWI as a

sell

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

  • Net operating cash flow has decreased to $72.28 million or 31.39% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much 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. In comparison to other companies in the IT Services industry and the overall market on the basis of return on equity, QIWI PLC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
  • Looking at the price performance of QIWI's shares over the past 12 months, there is not much good news to report: the stock is down 55.14%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the IT Services industry average. The net income has decreased by 11.8% when compared to the same quarter one year ago, dropping from $12.89 million to $11.37 million.
  • QIWI PLC's earnings per share declined by 25.0% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, QIWI PLC reported lower earnings of $1.22 versus $1.65 in the prior year. This year, the market expects an improvement in earnings ($74.01 versus $1.22).

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