Trade-Ideas LLC identified

Greif

(

GEF

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

  • GEF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.7 million.
  • GEF has traded 68,399 shares today.
  • GEF is trading at 8.10 times the normal volume for the stock at this time of day.
  • GEF is trading at a new low 6.07% 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.

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More details on GEF:

Greif, Inc. produces and sells industrial packaging products worldwide. The stock currently has a dividend yield of 5.8%. GEF has a PE ratio of 56. Currently there are 3 analysts that rate Greif a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Greif has been 318,700 shares per day over the past 30 days. Greif has a market cap of $1.4 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.09 and a short float of 2.3% with 7.47 days to cover. Shares are down 4.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Greif as a

hold

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, 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:

  • Net operating cash flow has significantly increased by 56.26% to -$26.20 million when compared to the same quarter last year. In addition, GREIF INC has also vastly surpassed the industry average cash flow growth rate of -6.07%.
  • GEF, with its decline in revenue, slightly underperformed the industry average of 10.8%. Since the same quarter one year prior, revenues fell by 14.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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 Containers & Packaging industry. The net income has significantly decreased by 136.9% when compared to the same quarter one year ago, falling from $30.10 million to -$11.10 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Containers & Packaging industry and the overall market, GREIF INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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