Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified MBIA as such a stock due to the following factors:
- MBI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.1 million.
- MBI has traded 247,828 shares today.
- MBI is trading at 2.09 times the normal volume for the stock at this time of day.
- MBI is trading at a new low 4.05% 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 MBI:
MBIA Inc. provides financial guarantee insurance services to public finance markets in the United States and internationally. It operates through three segments: U.S. Public Finance Insurance, International and Structured Finance Insurance, and Corporate. MBI has a PE ratio of 8. Currently there is 1 analyst that rates MBIA a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for MBIA has been 2.6 million shares per day over the past 30 days. MBIA has a market cap of $1.2 billion and is part of the financial sector and insurance industry. The stock has a beta of 2.25 and a short float of 14.5% with 6.62 days to cover. Shares are up 29.5% year-to-date as of the close of trading on Friday.
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rates MBIA as a
. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Highlights from the ratings report include:
- The debt-to-equity ratio is very high at 2.16 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
- 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. When compared to other companies in the Insurance industry and the overall market, MBIA INC's return on equity is below that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$97.00 million or 670.58% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- MBI has underperformed the S&P 500 Index, declining 9.25% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- MBIA INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, MBIA INC reported lower earnings of $1.04 versus $2.67 in the prior year. For the next year, the market is expecting a contraction of 49.0% in earnings ($0.53 versus $1.04).
- You can view the full MBIA Ratings Report.