Trade-Ideas LLC identified

Trimble Navigation

(

TRMB

) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Trimble Navigation as such a stock due to the following factors:

  • TRMB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $40.4 million.
  • TRMB has traded 801,539 shares today.
  • TRMB traded in a range 232.2% of the normal price range with a price range of $1.35.
  • TRMB traded below its daily resistance level (quality: 33 days, meaning that the stock is crossing a resistance level set by the last 33 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on TRMB:

Trimble Navigation Limited provides technology solutions to enhance the work processes of professionals and field mobile workers worldwide. TRMB has a PE ratio of 66. Currently there are 10 analysts that rate Trimble Navigation a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Trimble Navigation has been 1.2 million shares per day over the past 30 days. Trimble Navigation has a market cap of $7.0 billion and is part of the technology sector and electronics industry. The stock has a beta of 2.62 and a short float of 1.6% with 2.78 days to cover. Shares are up 21.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Trimble Navigation as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and premium valuation.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 1.5%. Since the same quarter one year prior, revenues slightly increased by 0.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has slightly increased to $113.20 million or 5.59% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -14.41%.
  • TRMB's debt-to-equity ratio is very low at 0.30 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.78 is somewhat weak and could be cause for future problems.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, TRIMBLE NAVIGATION LTD's return on equity is below that of both the industry average and the S&P 500.

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