Trade-Ideas LLC identified

SunOpta

(

STKL

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

  • STKL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.8 million.
  • STKL has traded 3.8 million shares today.
  • STKL is trading at 78.21 times the normal volume for the stock at this time of day.
  • STKL is trading at a new low 7.06% 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 STKL:

SunOpta Inc. sources, processes, packages, and markets natural, organic, and specialty food products in the United States, Canada, Europe, China, and Ethiopia. STKL has a PE ratio of 114. Currently there are 5 analysts that rate SunOpta a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for SunOpta has been 436,500 shares per day over the past 30 days. SunOpta has a market cap of $467.4 million and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 2.05 and a short float of 2.3% with 2.39 days to cover. Shares are down 47.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates SunOpta as a

hold

. 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:

  • SUNOPTA INC 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. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SUNOPTA INC turned its bottom line around by earning $0.17 versus -$0.13 in the prior year. This year, the market expects an improvement in earnings ($0.30 versus $0.17).
  • 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. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.48 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 8.4%. Since the same quarter one year prior, revenues slightly dropped by 6.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The gross profit margin for SUNOPTA INC is currently extremely low, coming in at 12.40%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.66% trails that of the industry average.
  • Net operating cash flow has significantly decreased to -$5.28 million or 115.90% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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