InfoSonics (IFON) Is Today's Strong On High 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 InfoSonics ( IFON) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified InfoSonics as such a stock due to the following factors:

  • IFON has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.9 million.
  • IFON has traded 77,255 shares today.
  • IFON is trading at 2.50 times the normal volume for the stock at this time of day.
  • IFON is trading at a new high 4.38% 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 IFON:

InfoSonics Corporation designs, develops, manufactures, and sells wireless telecommunication products and accessories to wireless carriers, distributors, retailers, dealer agents, resellers, and original equipment manufacturers. IFON has a PE ratio of 120.0.

The average volume for InfoSonics has been 162,300 shares per day over the past 30 days. InfoSonics has a market cap of $34.5 million and is part of the technology sector and telecommunications industry. The stock has a beta of 0.57 and a short float of 3.1% with 0.25 days to cover. Shares are up 109.8% year-to-date as of the close of trading on Tuesday.

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 InfoSonics 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 compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 4.2%. Since the same quarter one year prior, revenues rose by 25.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • IFON 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. Along with this, the company maintains a quick ratio of 3.23, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for INFOSONICS CORP is rather low; currently it is at 19.71%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.04% significantly trails the industry average.
  • Net operating cash flow has significantly decreased to $0.88 million or 51.87% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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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