Trade-Ideas LLC identified

Invacare

(

IVC

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

  • IVC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.2 million.
  • IVC has traded 51,314 shares today.
  • IVC is trading at 7.35 times the normal volume for the stock at this time of day.
  • IVC is trading at a new low 14.01% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in IVC with the Ticky from Trade-Ideas. See the FREE profile for IVC NOW at Trade-Ideas

More details on IVC:

Invacare Corporation designs, manufactures, and distributes medical equipment and supplies used in the home and long-term care settings. It operates through four segments: North America/Home Medical Equipment, Institutional Products Group, Europe, and Asia/Pacific. The stock currently has a dividend yield of 0.3%. Currently there is 1 analyst that rates Invacare a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Invacare has been 136,500 shares per day over the past 30 days. Invacare has a market cap of $534.8 million and is part of the health care sector and health services industry. The stock has a beta of 2.41 and a short float of 6.3% with 6.49 days to cover. Shares are down 3.2% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Invacare as a

sell

. Among the areas we feel are negative, one of the most important has been poor profit margins.

Highlights from the ratings report include:

  • The gross profit margin for INVACARE CORP is currently lower than what is desirable, coming in at 28.53%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.03% is significantly below that of the industry average.
  • 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 Health Care Equipment & Supplies industry and the overall market, INVACARE CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • IVC's share price is down 6.05%, reflecting, in part, the market's overall decline, investors ignoring the increase in its earnings per share. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The revenue fell significantly faster than the industry average of 29.7%. Since the same quarter one year prior, revenues fell by 11.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • IVC's debt-to-equity ratio is very low at 0.10 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 0.79 is somewhat weak and could be cause for future problems.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.