Trade-Ideas LLC identified

ClubCorp Holdings

(

MYCC

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

  • MYCC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.0 million.
  • MYCC has traded 230,190 shares today.
  • MYCC is trading at 6.48 times the normal volume for the stock at this time of day.
  • MYCC is trading at a new high 8.03% 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 MYCC:

ClubCorp Holdings, Inc., a membership-based leisure company, owns and operates private golf, country, business, sports, and alumni clubs in North America. It operates through two segments, Golf and Country Clubs; and Business, Sports, and Alumni Clubs. The stock currently has a dividend yield of 4.4%. Currently there are 8 analysts that rate ClubCorp Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for ClubCorp Holdings has been 730,800 shares per day over the past 30 days. ClubCorp has a market cap of $766.7 million and is part of the services sector and leisure industry. Shares are down 35.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates ClubCorp Holdings as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and poor profit margins.

Highlights from the ratings report include:

  • 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 Hotels, Restaurants & Leisure industry. The net income has significantly decreased by 99.3% when compared to the same quarter one year ago, falling from -$4.22 million to -$8.41 million.
  • The debt-to-equity ratio is very high at 7.12 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, MYCC has a quick ratio of 0.51, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • 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. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, CLUBCORP HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $22.31 million or 44.88% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for CLUBCORP HOLDINGS INC is rather low; currently it is at 24.98%. Regardless of MYCC's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, MYCC's net profit margin of -3.91% significantly underperformed when compared to the industry average.

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