Trade-Ideas LLC identified

MBIA

(

MBI

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

  • MBI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.8 million.
  • MBI has traded 201,244 shares today.
  • MBI is trading at 3.56 times the normal volume for the stock at this time of day.
  • MBI is trading at a new high 4.00% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in MBI with the Ticky from Trade-Ideas. See the FREE profile for MBI NOW at Trade-Ideas

More details on MBI:

TheStreet Recommends

MBIA Inc. provides financial guarantee insurance services to public finance markets in the United States and internationally. The company operates through U.S. Public Finance Insurance, and International and Structured Finance Insurance segments. MBI has a PE ratio of 4. Currently there are no analysts that rate MBIA a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for MBIA has been 3.1 million shares per day over the past 30 days. MBIA has a market cap of $1.2 billion and is part of the financial sector and insurance industry. The stock has a beta of 2.11 and a short float of 15.3% with 9.65 days to cover. Shares are down 24% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates MBIA 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, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

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 Insurance industry. The net income has significantly decreased by 46.7% when compared to the same quarter one year ago, falling from $120.00 million to $64.00 million.
  • The debt-to-equity ratio is very high at 2.29 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Insurance industry and the overall market, MBIA INC's return on equity is below that of both the industry average and the S&P 500.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, MBI has underperformed the S&P 500 Index, declining 24.69% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • MBIA INC's earnings per share declined by 20.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, MBIA INC increased its bottom line by earning $2.67 versus $1.10 in the prior year. For the next year, the market is expecting a contraction of 80.5% in earnings ($0.52 versus $2.67).

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.