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
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Rambus as such a stock due to the following factors:
- RMBS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.4 million.
- RMBS has traded 142,678 shares today.
- RMBS is trading at 6.18 times the normal volume for the stock at this time of day.
- RMBS is trading at a new high 4.09% 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 RMBS:
Rambus Inc. operates as a technology solutions company in South Korea, the United States, Japan, Europe, Canada, Asia, and internationally. The company's technology solutions include memory, chip interfaces and architectures, end-to-end security, and advanced LED lighting. RMBS has a PE ratio of 151.9. Currently there is 1 analyst that rates Rambus a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Rambus has been 496,100 shares per day over the past 30 days. Rambus has a market cap of $1.2 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.86 and a short float of 6.5% with 11.39 days to cover. Shares are down 5.2% year-to-date as of the close of trading on Monday.
rates Rambus as a
. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow.
Highlights from the ratings report include:
- RAMBUS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, RAMBUS INC continued to lose money by earning -$0.30 versus -$1.20 in the prior year. This year, the market expects an improvement in earnings ($0.23 versus -$0.30).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 196.3% when compared to the same quarter one year prior, rising from -$5.73 million to $5.51 million.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
- Net operating cash flow has declined marginally to $23.96 million or 6.65% when compared to the same quarter last year. Despite a decrease in cash flow of 6.65%, RAMBUS INC is still significantly exceeding the industry average of -80.33%.
- The gross profit margin for RAMBUS INC is currently lower than what is desirable, coming in at 34.53%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 7.90% significantly trails the industry average.
- You can view the full Rambus Ratings Report.