Cablevision Systems (CVC) Showing Signs Of Being Water-Logged And Getting Wetter

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 $63.9 million.
  • CVC has traded 6.1 million shares today.
  • CVC traded in a range 241.8% of the normal price range with a price range of $1.05.
  • CVC traded below its daily resistance level (quality: 24 days, meaning that the stock is crossing a resistance level set by the last 24 calendar days. 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, together with its subsidiaries, owns and operates cable television systems in the United States. The company operates through three segments: Cable, Lightpath, and Other. The stock currently has a dividend yield of 3.1%. CVC has a PE ratio of 22.6. Currently there are 4 analysts that rate Cablevision Systems a buy, 3 analysts rate it a sell, and 8 rate it a hold.

The average volume for Cablevision Systems has been 2.8 million shares per day over the past 30 days. Cablevision Systems has a market cap of $4.1 billion and is part of the services sector and media industry. The stock has a beta of 1.15 and a short float of 27.3% with 15.78 days to cover. Shares are up 8.5% year-to-date as of the close of trading on Monday.

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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 impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we find that the stock has experienced relatively poor performance when compared with the S&P 500 during the past year.

Highlights from the ratings report include:
  • CABLEVISION SYS CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, CABLEVISION SYS CORP increased its bottom line by earning $0.48 versus $0.25 in the prior year. This year, the market expects an improvement in earnings ($0.87 versus $0.48).
  • 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 656.1% when compared to the same quarter one year prior, rising from -$16.14 million to $89.76 million.
  • The gross profit margin for CABLEVISION SYS CORP is rather high; currently it is at 50.94%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 5.69% trails the industry average.
  • In its most recent trading session, CVC has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.

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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