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 or Stephanie Link.
Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified BBCN Bancorp as such a stock due to the following factors:
- BBCN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.9 million.
- BBCN has traded 144,327 shares today.
- BBCN is trading at 6.34 times the normal volume for the stock at this time of day.
- BBCN is trading at a new low 3.07% 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.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in BBCN with the Ticky from Trade-Ideas. See the FREE profile for BBCN NOW at Trade-Ideas
More details on BBCN:
BBCN Bancorp, Inc. operates as the bank holding company for BBCN Bank that provides commercial banking services primarily to small- to medium-sized businesses and individuals in the United States. The stock currently has a dividend yield of 2.7%. BBCN has a PE ratio of 13.7. Currently there are 7 analysts that rate BBCN Bancorp a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for BBCN Bancorp has been 501,500 shares per day over the past 30 days. BBCN has a market cap of $1.2 billion and is part of the financial sector and banking industry. The stock has a beta of 1.88 and a short float of 3.4% with 3.21 days to cover. Shares are down 15.6% year-to-date as of the close of trading on Tuesday.
rates BBCN Bancorp as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 9.6%. Since the same quarter one year prior, revenues slightly increased by 8.7%. 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.
- BBCN BANCORP INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. 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, BBCN BANCORP INC increased its bottom line by earning $1.03 versus $1.00 in the prior year. This year, the market expects an improvement in earnings ($1.16 versus $1.03).
- The gross profit margin for BBCN BANCORP INC is currently very high, coming in at 86.25%. Regardless of BBCN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BBCN's net profit margin of 25.66% compares favorably to the industry average.
- In its most recent trading session, BBCN has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- Net operating cash flow has significantly decreased to $10.96 million or 77.22% when compared to the same quarter last year. Despite a decrease in cash flow BBCN BANCORP INC is still fairing well by exceeding its industry average cash flow growth rate of -89.10%.
- You can view the full BBCN Bancorp Ratings Report.