China Finance Online (JRJC) Strong On High Relative Volume Today

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 China Finance Online ( JRJC) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified China Finance Online as such a stock due to the following factors:

  • JRJC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $126.7 million.
  • JRJC has traded 1.9 million shares today.
  • JRJC is trading at 11.28 times the normal volume for the stock at this time of day.
  • JRJC is trading at a new high 4.04% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 JRJC with the Ticky from Trade-Ideas. See the FREE profile for JRJC NOW at Trade-Ideas

More details on JRJC:

China Finance Online Co., Limited provides integrated financial information and services in the People's Republic of China and Hong Kong.

The average volume for China Finance Online has been 2.2 million shares per day over the past 30 days. China Finance Online has a market cap of $228.7 million and is part of the technology sector and internet industry. Shares are up 61.2% year-to-date as of the close of trading on Monday.

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

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates China Finance Online 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 solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:
  • JRJC's very impressive revenue growth greatly exceeded the industry average of 19.9%. Since the same quarter one year prior, revenues leaped by 321.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • JRJC has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, JRJC has a quick ratio of 1.77, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for CHINA FINANCE ONLINE CO -ADR is currently very high, coming in at 76.75%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -8.56% is in-line with the industry average.
  • CHINA FINANCE ONLINE CO -ADR 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. During the past fiscal year, CHINA FINANCE ONLINE CO -ADR continued to lose money by earning -$0.41 versus -$0.54 in the prior year.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, CHINA FINANCE ONLINE CO -ADR's return on equity significantly trails that of both the industry average and the S&P 500.

null

If you liked this article you might like

China Finance Online (JRJC) Weak On High Volume

China Finance Online (JRJC) Weak On High Volume

AMZN, GOOGL, FB, TSLA: Rev Shark's Views

AMZN, GOOGL, FB, TSLA: Rev Shark's Views

5 Stocks Under $10 Set to Soar

5 Stocks Under $10 Set to Soar

China Finance Online (JRJC) Weak On High Volume Today

China Finance Online (JRJC) Weak On High Volume Today

4 Stocks Under $10 Making Big Moves

4 Stocks Under $10 Making Big Moves