Trade-Ideas LLC identified

Sony

(

SNE

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

  • SNE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $29.2 million.
  • SNE has traded 176,799 shares today.
  • SNE is trading at 3.12 times the normal volume for the stock at this time of day.
  • SNE is trading at a new low 4.00% 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 SNE:

TheStreet Recommends

Sony Corporation designs, develops, manufactures, and sells electronic equipment, instruments, and devices for consumer, professional, and industrial markets worldwide. SNE has a PE ratio of 8. Currently there are 2 analysts that rate Sony a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Sony has been 1.3 million shares per day over the past 30 days. Sony has a market cap of $35.9 billion and is part of the consumer goods sector and consumer durables industry. Shares are up 41.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Sony as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins.

Highlights from the ratings report include:

  • Powered by its strong earnings growth of 152.17% and other important driving factors, this stock has surged by 63.01% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains 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 Household Durables industry. The net income increased by 155.1% when compared to the same quarter one year prior, rising from $264.69 million to $675.19 million.
  • The current debt-to-equity ratio, 0.39, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that SNE's debt-to-equity ratio is low, the quick ratio, which is currently 0.60, displays a potential problem in covering short-term cash needs.
  • The gross profit margin for SONY CORP is currently extremely low, coming in at 5.81%. Regardless of SNE's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.55% trails the industry average.
  • Net operating cash flow has significantly decreased to -$1,263.64 million or 293.20% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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