Trade-Ideas LLC identified

Philippine Long Distance Telephone

(

PHI

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

  • PHI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.0 million.
  • PHI has traded 85,376 shares today.
  • PHI is trading at 23.38 times the normal volume for the stock at this time of day.
  • PHI is trading at a new low 17.05% 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 PHI:

Philippine Long Distance Telephone Company provides telecommunications services in the Philippines. The stock currently has a dividend yield of 4.3%. PHI has a PE ratio of 14. Currently there are no analysts that rate Philippine Long Distance Telephone a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for Philippine Long Distance Telephone has been 94,200 shares per day over the past 30 days. Philippine Long Distance Telephone has a market cap of $31.6 billion and is part of the technology sector and telecommunications industry. Shares are up 8.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Philippine Long Distance Telephone as a

hold

. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Wireless Telecommunication Services industry and the overall market, PLDT-PHILIPPINE LNG DIST TEL's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • 45.87% is the gross profit margin for PLDT-PHILIPPINE LNG DIST TEL which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.95% is above that of the industry average.
  • PHI, with its decline in revenue, underperformed when compared the industry average of 14.0%. Since the same quarter one year prior, revenues slightly dropped by 3.8%. 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 underperformed when compared to that of the S&P 500 and the Wireless Telecommunication Services industry average. The net income has decreased by 22.9% when compared to the same quarter one year ago, dropping from $163.64 million to $126.09 million.
  • The debt-to-equity ratio of 1.36 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with this, the company manages to maintain a quick ratio of 0.39, which clearly demonstrates the inability to cover short-term cash needs.

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