Trade-Ideas LLC identified

CalAmp

(

CAMP

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

  • CAMP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.7 million.
  • CAMP has traded 54,286 shares today.
  • CAMP is trading at 3.67 times the normal volume for the stock at this time of day.
  • CAMP is trading at a new low 3.11% 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 CAMP:

CalAmp Corp. provides wireless communications solutions for various applications worldwide. It operates through two segments, Wireless DataCom and Satellite. CAMP has a PE ratio of 33. Currently there are 7 analysts that rate CalAmp a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for CalAmp has been 472,900 shares per day over the past 30 days. CalAmp has a market cap of $549.4 million and is part of the technology sector and telecommunications industry. The stock has a beta of 1.67 and a short float of 11% with 10.17 days to cover. Shares are down 29% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates CalAmp as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and disappointing return on equity.

Highlights from the ratings report include:

  • CAMP's revenue growth has slightly outpaced the industry average of 0.3%. Since the same quarter one year prior, revenues slightly increased by 2.3%. 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 increased to $9.53 million or 23.36% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -2.26%.
  • CAMP's debt-to-equity ratio of 0.74 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 5.60 is very high and demonstrates very strong liquidity.
  • 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 Communications Equipment industry average. The net income has decreased by 15.5% when compared to the same quarter one year ago, dropping from $6.52 million to $5.51 million.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, CAMP has underperformed the S&P 500 Index, declining 22.23% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

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