Trade-Ideas LLC identified

TubeMogul

(

TUBE

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

  • TUBE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.3 million.
  • TUBE has traded 69,122 shares today.
  • TUBE is trading at 7.37 times the normal volume for the stock at this time of day.
  • TUBE is trading at a new high 6.23% 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 TUBE:

TubeMogul, Inc. designs, develops, and markets software for digital branding. It offers a cloud-based platform that enables advertisers to plan, buy, measure, and optimize video advertising spend from a single platform. Currently there are 6 analysts that rate TubeMogul a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for TubeMogul has been 199,200 shares per day over the past 30 days. TubeMogul has a market cap of $412.3 million and is part of the technology sector and computer software & services industry. Shares are down 9.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates TubeMogul as a

hold

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

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 9.5%. Since the same quarter one year prior, revenues rose by 38.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • TUBE's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, TUBE has a quick ratio of 1.93, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for TUBEMOGUL INC is currently very high, coming in at 74.29%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -19.61% is in-line with the industry average.
  • TUBE'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 26.61%, 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.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Software industry average. The net income has decreased by 15.6% when compared to the same quarter one year ago, dropping from -$7.14 million to -$8.26 million.

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