Trade-Ideas LLC identified
) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Qihoo 360 Technology as such a stock due to the following factors:
- QIHU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $103.3 million.
- QIHU has traded 11.7 million shares today.
- QIHU is trading at 9.56 times the normal volume for the stock at this time of day.
- QIHU crossed below its 200-day simple moving average.
'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.
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More details on QIHU:
Qihoo 360 Technology Co. Ltd., through its subsidiaries, provides Internet services to the companies in the People's Republic of China. It operates through Internet services, and Smart Hardware and Internet of Things (IOT) Devices segments. QIHU has a PE ratio of 47. Currently there is 1 analyst that rates Qihoo 360 Technology a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Qihoo 360 Technology has been 1.5 million shares per day over the past 30 days. Qihoo 360 Technology has a market cap of $9.6 billion and is part of the technology sector and computer software & services industry. Shares are up 0.8% year-to-date as of the close of trading on Friday.
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rates Qihoo 360 Technology as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and solid stock price performance. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 20.7%. Since the same quarter one year prior, revenues rose by 37.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 110.00% and other important driving factors, this stock has surged by 32.02% over the past year, outperforming the rise in the S&P 500 Index during the same period. Although QIHU had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- The gross profit margin for QIHOO 360 TECHNOLGY CO -ADR is currently very high, coming in at 83.46%. Regardless of QIHU's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 18.55% trails the industry average.
- Currently the debt-to-equity ratio of 1.50 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 2.54, which shows the ability to cover short-term cash needs.
- You can view the full Qihoo 360 Technology Ratings Report.