Trade-Ideas: Cadiz (CDZI) Is Today's Strong On High Relative Volume Stock

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

  • CDZI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.1 million.
  • CDZI has traded 78,035 shares today.
  • CDZI is trading at 37.22 times the normal volume for the stock at this time of day.
  • CDZI is trading at a new high 4.03% 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.

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More details on CDZI:

Cadiz Inc. operates as a land and water resource development company in the United States. The company is involved in the water resource, and land and agricultural development activities in San Bernardino County properties.

The average volume for Cadiz has been 64,800 shares per day over the past 30 days. Cadiz has a market cap of $213.9 million and is part of the utilities sector and utilities industry. The stock has a beta of 1.49 and a short float of 12.5% with 6.74 days to cover. Shares are up 89.9% year-to-date as of the close of trading on Friday.

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 Cadiz as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Water Utilities industry average. The net income has decreased by 1.2% when compared to the same quarter one year ago, dropping from -$4.46 million to -$4.52 million.
  • CADIZ INC's earnings per share improvement from the most recent quarter was slightly positive. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, CADIZ INC reported poor results of -$1.46 versus -$1.28 in the prior year.
  • The gross profit margin for CADIZ INC is currently very high, coming in at 100.00%. CDZI has managed to maintain the strong profit margin since the same quarter of last year. Despite the mixed results of the gross profit margin, CDZI's net profit margin of -41045.45% significantly underperformed when compared to the industry average.
  • Net operating cash flow has increased to -$2.12 million or 44.55% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 17.66%.
  • Investors have driven up the company's shares by 180.38% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the future course of this stock, we feel that the risks involved in investing in CDZI do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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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