Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Mavenir Systems

(

MVNR

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

  • MVNR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.1 million.
  • MVNR has traded 404,973 shares today.
  • MVNR is trading at 18.65 times the normal volume for the stock at this time of day.
  • MVNR is trading at a new low 4.57% 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 MVNR:

TST Recommends

Mavenir Systems, Inc. provides software-based telecommunications networking solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific regions. Currently there is 1 analyst that rates Mavenir Systems a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Mavenir Systems has been 505,300 shares per day over the past 30 days. Mavenir Systems has a market cap of $526.5 million and is part of the technology sector and telecommunications industry. Shares are up 34.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Mavenir Systems 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 notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 9.9%. Since the same quarter one year prior, revenues rose by 24.2%. 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.
  • Despite currently having a low debt-to-equity ratio of 0.40, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that MVNR's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.02 is high and demonstrates strong liquidity.
  • 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 Software industry. The net income has significantly decreased by 332.6% when compared to the same quarter one year ago, falling from -$2.84 million to -$12.30 million.
  • Net operating cash flow has decreased to -$4.33 million or 23.09% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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