Trade-Ideas LLC identified

Bunge

(

BG

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

  • BG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $46.9 million.
  • BG has traded 223,765 shares today.
  • BG is trading at 6.74 times the normal volume for the stock at this time of day.
  • BG is trading at a new high 4.08% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 BG:

Bunge Limited, through its subsidiaries, operates as an agribusiness and food company worldwide. It operates in five segments: Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer. The stock currently has a dividend yield of 2.1%. BG has a PE ratio of 2. Currently there is 1 analyst that rates Bunge a buy, 1 analyst rates it a sell, and 7 rate it a hold.

The average volume for Bunge has been 1.0 million shares per day over the past 30 days. Bunge has a market cap of $9.7 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.69 and a short float of 2.5% with 5.51 days to cover. Shares are down 24% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Bunge as a

hold

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow.

Highlights from the ratings report include:

  • The debt-to-equity ratio is somewhat low, currently at 0.65, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.43 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The share price of BUNGE LTD has not done very well: it is down 17.02% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • 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 Food Products industry. The net income has significantly decreased by 70.1% when compared to the same quarter one year ago, falling from $288.00 million to $86.00 million.

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