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

magicJack VocalTec

(

CALL

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

  • CALL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.3 million.
  • CALL has traded 76,287 shares today.
  • CALL is trading at 6.08 times the normal volume for the stock at this time of day.
  • CALL is trading at a new high 4.06% 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 CALL:

magicJack VocalTec Ltd., together with its subsidiaries, operates as a cloud-based communications company that provides voice-over-Internet-Protocol (VoIP) services in the United States. CALL has a PE ratio of 2.9. Currently there are no analysts that rate magicJack VocalTec a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for magicJack VocalTec has been 369,000 shares per day over the past 30 days. magicJack VocalTec has a market cap of $148.7 million and is part of the technology sector and telecommunications industry. The stock has a beta of 2.48 and a short float of 25.4% with 7.10 days to cover. Shares are down 30% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates magicJack VocalTec as a

hold

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

Highlights from the ratings report include:

  • Compared to other companies in the Diversified Telecommunication Services industry and the overall market, MAGICJACK VOCALTEC LTD's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for MAGICJACK VOCALTEC LTD is rather high; currently it is at 67.09%. Regardless of CALL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CALL's net profit margin of 0.00% is significantly lower than the industry average.
  • 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 Diversified Telecommunication Services industry. The net income has significantly decreased by 100.0% when compared to the same quarter one year ago, falling from $8.90 million to -$0.00 million.
  • Net operating cash flow has significantly decreased to $3.43 million or 67.01% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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