National Bank Of Greece (NBG) Weak On High Volume

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 National Bank of Greece ( NBG) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified National Bank of Greece as such a stock due to the following factors:

  • NBG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.6 million.
  • NBG has traded 1.2 million shares today.
  • NBG is trading at 4.34 times the normal volume for the stock at this time of day.
  • NBG is trading at a new low 5.11% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 NBG:

National Bank of Greece S.A., together with its subsidiaries, offers diversified financial services primarily in Greece. The company is involved in retail and commercial banking, investment management, investment banking, insurance, investment activities, and securities trading activities. NBG has a PE ratio of 75.0. Currently there are no analysts that rate National Bank of Greece a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for National Bank of Greece has been 3.5 million shares per day over the past 30 days. National Bank of Greece has a market cap of $10.6 billion and is part of the financial sector and banking industry. Shares are down 42.7% year-to-date as of the close of trading on Wednesday.

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 National Bank of Greece as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • Net operating cash flow has significantly decreased to -$7,775.80 million or 635.25% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for NATIONAL BANK OF GREECE is currently lower than what is desirable, coming in at 32.29%. It has decreased significantly from the same period last year. Despite the weak results of the gross profit margin, the net profit margin of 70.84% has significantly outperformed against the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 26.12%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 64.06% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • NATIONAL BANK OF GREECE has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, NATIONAL BANK OF GREECE turned its bottom line around by earning $1.98 versus -$27.80 in the prior year. For the next year, the market is expecting a contraction of 75.8% in earnings ($0.48 versus $1.98).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 12.8%. Since the same quarter one year prior, revenues fell by 11.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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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