Trade-Ideas LLC identified

Tumi Holdings

(

TUMI

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

  • TUMI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.9 million.
  • TUMI has traded 81,369 shares today.
  • TUMI is trading at 2.72 times the normal volume for the stock at this time of day.
  • TUMI is trading at a new high 3.10% 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 TUMI:

TheStreet Recommends

Tumi Holdings, Inc. designs, produces, and markets a range of travel and business products, and accessories. It operates in four segments: Direct-to-Consumer North America; Direct-to-Consumer International; Indirect-to-Consumer North America; and Indirect-to-Consumer International. TUMI has a PE ratio of 19. Currently there are 2 analysts that rate Tumi Holdings a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Tumi Holdings has been 953,800 shares per day over the past 30 days. Tumi has a market cap of $1.2 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.55 and a short float of 13.4% with 12.28 days to cover. Shares are up 4.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Tumi Holdings as a

hold

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

Highlights from the ratings report include:

  • TUMI's revenue growth trails the industry average of 14.9%. Since the same quarter one year prior, revenues slightly increased by 0.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • TUMI has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.43, which illustrates the ability to avoid short-term cash problems.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Textiles, Apparel & Luxury Goods industry average. The net income increased by 6.8% when compared to the same quarter one year prior, going from $13.92 million to $14.87 million.
  • Net operating cash flow has declined marginally to $12.00 million or 0.55% when compared to the same quarter last year. Despite a decrease in cash flow of 0.55%, TUMI HOLDINGS INC is in line with the industry average cash flow growth rate of -1.52%.
  • TUMI's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 26.29%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

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