Water-Logged And Getting Wetter: Cablevision Systems (CVC)

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 or Stephanie Link.

Trade-Ideas LLC identified Cablevision Systems ( CVC) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Cablevision Systems as such a stock due to the following factors:

  • CVC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $49.7 million.
  • CVC has traded 5.5 million shares today.
  • CVC traded in a range 217.3% of the normal price range with a price range of $0.91.
  • CVC traded below its daily resistance level (quality: 1 day, meaning that the stock is crossing a resistance level set by the last 1 calendar day. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on CVC:

Cablevision Systems Corporation provides telecommunications and media services. It operates in two segments, Telecommunications Services and Other. The stock currently has a dividend yield of 3.6%. Currently there are 4 analysts that rate Cablevision Systems a buy, 3 analysts rate it a sell, and 10 rate it a hold.

The average volume for Cablevision Systems has been 3.5 million shares per day over the past 30 days. Cablevision Systems has a market cap of $3.6 billion and is part of the services sector and media industry. The stock has a beta of 1.15 and a short float of 21.3% with 12.74 days to cover. Shares are down 5.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Cablevision Systems as a hold. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, compelling growth in net income and revenue growth. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

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 Media industry. The net income increased by 7871.1% when compared to the same quarter one year prior, rising from -$3.79 million to $294.60 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 3.1%. Since the same quarter one year prior, revenues slightly increased by 2.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CABLEVISION SYS CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CABLEVISION SYS CORP reported lower earnings of $0.23 versus $0.84 in the prior year. This year, the market expects an improvement in earnings ($0.36 versus $0.23).
  • The gross profit margin for CABLEVISION SYS CORP is rather high; currently it is at 51.06%. Regardless of CVC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CVC's net profit margin of 18.79% compares favorably to the industry average.
  • Net operating cash flow has decreased to $303.72 million or 19.06% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, CABLEVISION SYS CORP has marginally lower results.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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