Trade-Ideas LLC identified

Vince

(

VNCE

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

  • VNCE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.0 million.
  • VNCE has traded 125,945 shares today.
  • VNCE is trading at 3.40 times the normal volume for the stock at this time of day.
  • VNCE is trading at a new low 7.10% 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 VNCE:

Vince Holding Corp. designs, merchandises, and sells various contemporary fashion brand products in the United States and internationally. It operates through two segments, Wholesale and Direct-To-Consumer. VNCE has a PE ratio of 19. Currently there is 1 analyst that rates Vince a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Vince has been 501,200 shares per day over the past 30 days. Vince has a market cap of $235.4 million and is part of the consumer goods sector and consumer non-durables industry. Shares are up 47.6% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Vince as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow 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 Textiles, Apparel & Luxury Goods industry. The net income has significantly decreased by 55.7% when compared to the same quarter one year ago, falling from $13.31 million to $5.89 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 63.92%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 54.28% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • VNCE's debt-to-equity ratio of 0.99 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.31 is very low and demonstrates very weak liquidity.
  • 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 Textiles, Apparel & Luxury Goods industry and the overall market on the basis of return on equity, VINCE HOLDING CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • Net operating cash flow has significantly decreased to $10.05 million or 59.83% when compared to the same quarter last year. Despite a decrease in cash flow VINCE HOLDING CORP is still fairing well by exceeding its industry average cash flow growth rate of -72.69%.

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