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 $35.8 million.
  • SNE has traded 733,524 shares today.
  • SNE is trading at 3.16 times the normal volume for the stock at this time of day.
  • SNE is trading at a new low 5.04% 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:

TST 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 6. 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 $26.8 billion and is part of the consumer goods sector and consumer durables industry. Shares are down 13.7% 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 compelling growth in net income, revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a decline in the stock price during the past year.

Highlights from the ratings report include:

  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Household Durables industry average. The net income increased by 123.2% when compared to the same quarter one year prior, rising from -$1,260.14 million to $292.96 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.7%. Since the same quarter one year prior, revenues slightly increased by 0.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.45, 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 0.63, displays a potential problem in covering short-term cash needs.
  • After a year of stock price fluctuations, the net result is that SNE's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • The gross profit margin for SONY CORP is currently extremely low, coming in at 6.52%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.82% trails that of the industry average.

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