Trade-Ideas LLC identified

Tyco International

(

TYC

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

  • TYC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $195.1 million.
  • TYC has traded 726,879 shares today.
  • TYC is trading at 4.14 times the normal volume for the stock at this time of day.
  • TYC is trading at a new low 3.02% 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 TYC:

TheStreet Recommends

Tyco International plc provides security products and services, fire detection and suppression products and services, and life safety products worldwide. The stock currently has a dividend yield of 2.7%. TYC has a PE ratio of 21. Currently there are 5 analysts that rate Tyco International a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Tyco International has been 3.3 million shares per day over the past 30 days. Tyco International has a market cap of $13.0 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.15 and a short float of 1.1% with 0.70 days to cover. Shares are up 7.1% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Tyco International as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and disappointing return on equity.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Services & Supplies industry. The net income increased by 174.2% when compared to the same quarter one year prior, rising from -$89.00 million to $66.00 million.
  • The debt-to-equity ratio is somewhat low, currently at 0.78, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.85 is somewhat weak and could be cause for future problems.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Commercial Services & Supplies industry and the overall market on the basis of return on equity, TYCO INTERNATIONAL PLC 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 $29.00 million or 90.06% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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