Strong On High Relative Volume: Melco Crown Entertainment (MPEL)
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Melco Crown Entertainment as such a stock due to the following factors:
- MPEL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $46.6 million.
- MPEL has traded 378,708 shares today.
- MPEL is trading at 2.83 times the normal volume for the stock at this time of day.
- MPEL is trading at a new high 4.02% 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 MPEL:
Melco Crown Entertainment Limited, through its subsidiaries, develops, owns, and operates casino gaming and entertainment casino resort facilities in Asia. The stock currently has a dividend yield of 0.4%. MPEL has a PE ratio of 41. Currently there are 3 analysts that rate Melco Crown Entertainment a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Melco Crown Entertainment has been 3.0 million shares per day over the past 30 days. Melco Crown Entertainment has a market cap of $8.0 billion and is part of the services sector and leisure industry. Shares are down 11.4% year-to-date as of the close of trading on Friday.
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Analysis:
rates Melco Crown Entertainment as a
. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
Highlights from the ratings report include:
- The debt-to-equity ratio is somewhat low, currently at 0.98, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, MPEL has a quick ratio of 2.41, which demonstrates the ability of the company to cover short-term liquidity needs.
- MPEL, with its decline in revenue, underperformed when compared the industry average of 10.5%. Since the same quarter one year prior, revenues slightly dropped by 5.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- MELCO CROWN ENTMT LTD has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, MELCO CROWN ENTMT LTD reported lower earnings of $0.20 versus $1.10 in the prior year. This year, the market expects an improvement in earnings ($0.32 versus $0.20).
- 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 113.3% when compared to the same quarter one year ago, falling from $92.94 million to -$12.34 million.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 27.36%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 111.76% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
- You can view the full Melco Crown Entertainment Ratings Report.
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