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.

Trade-Ideas LLC identified

Wilshire Bancorp

(

WIBC

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

  • WIBC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.5 million.
  • WIBC has traded 87,228 shares today.
  • WIBC is trading at 3.36 times the normal volume for the stock at this time of day.
  • WIBC is trading at a new low 4.00% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in WIBC with the Ticky from Trade-Ideas. See the FREE profile for WIBC NOW at Trade-Ideas

More details on WIBC:

Wilshire Bancorp, Inc. operates as the holding company for Wilshire Bank that offers a range of financial products and services. The company operates in three segments: Banking Operations, Small Business Administration Lending Services, and Trade Finance Services. The stock currently has a dividend yield of 1.9%. WIBC has a PE ratio of 15. Currently there are 4 analysts that rate Wilshire Bancorp a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Wilshire Bancorp has been 423,400 shares per day over the past 30 days. Wilshire has a market cap of $990.8 million and is part of the financial sector and banking industry. The stock has a beta of 1.98 and a short float of 3.6% with 4.77 days to cover. Shares are up 25.8% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Wilshire Bancorp as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 0.0%. Since the same quarter one year prior, revenues rose by 14.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Powered by its strong earnings growth of 41.17% and other important driving factors, this stock has surged by 26.87% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, WIBC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • WILSHIRE BANCORP INC has improved earnings per share by 41.2% 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 year. We feel that this trend should continue. During the past fiscal year, WILSHIRE BANCORP INC increased its bottom line by earning $0.75 versus $0.63 in the prior year. This year, the market expects an improvement in earnings ($0.85 versus $0.75).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 42.0% when compared to the same quarter one year prior, rising from $13.11 million to $18.62 million.
  • Net operating cash flow has increased to $35.05 million or 40.88% when compared to the same quarter last year. In addition, WILSHIRE BANCORP INC has also vastly surpassed the industry average cash flow growth rate of -37.23%.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.