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 weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified YOU On Demand Holdings as such a stock due to the following factors:
- YOD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.8 million.
- YOD has traded 356,768 shares today.
- YOD is trading at 5.20 times the normal volume for the stock at this time of day.
- YOD is trading at a new low 8.13% 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 YOD:
YOU On Demand Holdings, Inc. delivers pay-per-view, video on demand, and enhanced premium content for cable providers in the People's Republic of China as well as offering cable and wireless broadband internet services.
The average volume for YOU On Demand Holdings has been 766,100 shares per day over the past 30 days. YOU On Demand has a market cap of $48.7 million and is part of the services sector and media industry. The stock has a beta of 1.05 and a short float of 8.1% with 0.90 days to cover. Shares are up 19.4% year-to-date as of the close of trading on Monday.
rates YOU On Demand Holdings as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Media industry. The net income has significantly decreased by 161.4% when compared to the same quarter one year ago, falling from $3.17 million to -$1.95 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Media industry and the overall market, YOU ON DEMAND HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- YOD has underperformed the S&P 500 Index, declining 21.41% 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.
- YOU ON DEMAND HOLDINGS 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, YOU ON DEMAND HOLDINGS INC continued to lose money by earning -$0.89 versus -$1.19 in the prior year. For the next year, the market is expecting a contraction of 18.0% in earnings (-$1.05 versus -$0.89).
- Net operating cash flow has slightly increased to -$2.50 million or 9.72% when compared to the same quarter last year. Despite an increase in cash flow, YOU ON DEMAND HOLDINGS INC's average is still marginally south of the industry average growth rate of 17.19%.
- You can view the full YOU On Demand Holdings Ratings Report.