Trade-Ideas LLC identified

Vasco Data Security International

(

VDSI

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

  • VDSI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.5 million.
  • VDSI has traded 74,214 shares today.
  • VDSI is trading at 2.43 times the normal volume for the stock at this time of day.
  • VDSI is trading at a new high 3.05% 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 VDSI:

VASCO Data Security International, Inc., together with its subsidiaries, designs, develops, markets, and supports hardware and software security systems that manage and secure access to information assets worldwide. VDSI has a PE ratio of 15. Currently there are 2 analysts that rate Vasco Data Security International a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Vasco Data Security International has been 714,000 shares per day over the past 30 days. Vasco Data Security International has a market cap of $740.0 million and is part of the technology sector and computer software & services industry. The stock has a beta of 1.11 and a short float of 45.1% with 24.17 days to cover. Shares are down 33.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Vasco Data Security International as a

buy

. 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, notable return on equity, reasonable valuation levels and increase in net income. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 15.8%. Since the same quarter one year prior, revenues rose by 14.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • VDSI 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 this, the company maintains a quick ratio of 5.28, which clearly demonstrates the ability to cover short-term cash needs.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Software industry and the overall market, VASCO DATA SEC INTL INC's return on equity exceeds that of both the industry average and the S&P 500.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Software industry average. The net income increased by 0.2% when compared to the same quarter one year prior, going from $11.16 million to $11.18 million.

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