Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified TAL International Group as such a stock due to the following factors:
- TAL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.6 million.
- TAL has traded 92,473 shares today.
- TAL is trading at 7.00 times the normal volume for the stock at this time of day.
- TAL is trading at a new low 9.19% 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 TAL:
TAL International Group, Inc., together with its subsidiaries, leases intermodal transportation equipment and provides maritime container management services worldwide. The company operates in two segments, Equipment Leasing and Equipment Trading. The stock currently has a dividend yield of 10.8%. TAL has a PE ratio of 7. Currently there are 2 analysts that rate TAL International Group a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for TAL International Group has been 269,500 shares per day over the past 30 days. TAL International Group has a market cap of $889.2 million and is part of the services sector and diversified services industry. The stock has a beta of 1.54 and a short float of 7.7% with 8.07 days to cover. Shares are down 38.6% year-to-date as of the close of trading on Wednesday.
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rates TAL International Group as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk.
Highlights from the ratings report include:
- TAL's revenue growth has slightly outpaced the industry average of 3.9%. Since the same quarter one year prior, revenues slightly increased by 5.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to $91.25 million or 22.59% when compared to the same quarter last year. Despite an increase in cash flow, TAL INTERNATIONAL GROUP INC's cash flow growth rate is still lower than the industry average growth rate of 41.40%.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Trading Companies & Distributors industry average. The net income has decreased by 14.2% when compared to the same quarter one year ago, dropping from $30.01 million to $25.76 million.
- The debt-to-equity ratio is very high at 4.86 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
- You can view the full TAL International Group Ratings Report.