Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Sigma Designs as such a stock due to the following factors:
- SIGM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.7 million.
- SIGM has traded 231,058 shares today.
- SIGM is trading at 10.18 times the normal volume for the stock at this time of day.
- SIGM is trading at a new high 4.52% 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 SIGM:
Sigma Designs, Inc. provides integrated system-on-chip (SoC) solutions for digital television, home networking, set-top box, and home control markets. Currently there are 2 analysts that rate Sigma Designs a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Sigma Designs has been 285,400 shares per day over the past 30 days. Sigma Designs has a market cap of $193.9 million and is part of the technology sector and electronics industry. The stock has a beta of 0.67 and a short float of 1.4% with 1.34 days to cover. Shares are up 28% year-to-date as of the close of trading on Monday.
rates Sigma Designs as a
. The area that we feel has been the company's primary weakness has been its declining revenues.
Highlights from the ratings report include:
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, SIGMA DESIGNS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for SIGMA DESIGNS INC is rather high; currently it is at 59.42%. Regardless of SIGM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SIGM's net profit margin of -1.03% significantly underperformed when compared to the industry average.
- SIGM, with its decline in revenue, underperformed when compared the industry average of 18.7%. Since the same quarter one year prior, revenues slightly dropped by 1.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- SIGM 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. To add to this, SIGM has a quick ratio of 2.27, which demonstrates the ability of the company to cover short-term liquidity needs.
- Looking at where the stock is today compared to one year ago, we find that it is higher, and it has outperformed the rise in the S&P 500 over the same period. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
- You can view the full Sigma Designs Ratings Report.