Trade-Ideas LLC identified
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Straight Path Communications as such a stock due to the following factors:
- STRP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.1 million.
- STRP has traded 72,538 shares today.
- STRP is trading at 11.86 times the normal volume for the stock at this time of day.
- STRP is trading at a new high 10.27% 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 STRP with the Ticky from Trade-Ideas. See the FREE profile for STRP NOW at Trade-Ideas
More details on STRP:
Straight Path Communications Inc., through its subsidiaries, holds, leases, and markets fixed wireless spectrum licenses in the United States. The company holds 828 licenses of 39 gigahertz band; and 133 licenses in the local multipoint distribution service band.
The average volume for Straight Path Communications has been 149,800 shares per day over the past 30 days. Straight Path has a market cap of $291.0 million and is part of the technology sector and telecommunications industry. The stock has a beta of -1.71 and a short float of 28.4% with 6.43 days to cover. Shares are up 1.2% year-to-date as of the close of trading on Tuesday.
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.
rates Straight Path Communications as a
. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and disappointing return on equity.
Highlights from the ratings report include:
- STRAIGHT PATH COMMUNICATIONS 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, STRAIGHT PATH COMMUNICATIONS swung to a loss, reporting -$0.17 versus $0.15 in the prior year. For the next year, the market is expecting a contraction of 211.8% in earnings (-$0.53 versus -$0.17).
- 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 Diversified Telecommunication Services industry. The net income has significantly decreased by 331.2% when compared to the same quarter one year ago, falling from $0.80 million to -$1.85 million.
- 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 Diversified Telecommunication Services industry and the overall market, STRAIGHT PATH COMMUNICATIONS's return on equity significantly trails that of both the industry average and the S&P 500.
- STRP, with its very weak revenue results, has greatly underperformed against the industry average of 19.7%. Since the same quarter one year prior, revenues plummeted by 92.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Compared to where it was a year ago, the stock is now trading at a higher level, and has traded in line with the S&P 500. Regardless of the rise in share value over the previous year, we feel that the risks involved in investing in this stock do not compensate for any future upside potential.
- You can view the full Straight Path Communications Ratings Report.