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

  • VIMC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.1 million.
  • VIMC has traded 397,277 shares today.
  • VIMC is trading at 6.52 times the normal volume for the stock at this time of day.
  • VIMC is trading at a new high 7.14% 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 VIMC with the Ticky from Trade-Ideas. See the FREE profile for VIMC NOW at Trade-Ideas

More details on VIMC:

Vimicro International Corporation, together with its subsidiaries, provides video surveillance solution and video processors in Mainland China, Hong Kong, and the United States. It operates through Video surveillance Product and Video Processor segments. Currently there is 1 analyst that rates Vimicro International a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Vimicro International has been 1.3 million shares per day over the past 30 days. Vimicro International has a market cap of $158.2 million and is part of the technology sector and electronics industry. Shares are up 230.4% year-to-date as of the close of trading on Thursday.

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 Vimicro International as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and revenue growth. 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:
  • Compared to its price level of one year ago, VIMC is up 208.17% to its most recent closing price of 6.41. Looking ahead, our view is that this company's fundamentals should not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 82.8% when compared to the same quarter one year prior, rising from $1.82 million to $3.33 million.
  • VIMICRO INTL CORP -ADR reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, VIMICRO INTL CORP -ADR swung to a loss, reporting -$0.30 versus $0.05 in the prior year. This year, the market expects an improvement in earnings ($0.23 versus -$0.30).
  • 39.41% is the gross profit margin for VIMICRO INTL CORP -ADR which we consider to be strong. Regardless of VIMC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, VIMC's net profit margin of 12.05% is significantly lower than the industry average.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, VIMICRO INTL CORP -ADR's return on equity significantly trails that of both the industry average and the S&P 500.

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

null

More from Markets

Hormel's Jennie-O Recalls 91,388 Pounds of Turkey on Salmonella Fears

Hormel's Jennie-O Recalls 91,388 Pounds of Turkey on Salmonella Fears

Pfizer Plans Price Hikes for 41 Drugs Next Year

Pfizer Plans Price Hikes for 41 Drugs Next Year

Nvidia Shares Tank as Analysts Cut Price Targets

Nvidia Shares Tank as Analysts Cut Price Targets

Homebuilder Stocks Rebound From Dip on Rate Hike Expectations

Homebuilder Stocks Rebound From Dip on Rate Hike Expectations

Dow Ends Higher on Dovish Trump Tariff Comments; Nasdaq Falls

Dow Ends Higher on Dovish Trump Tariff Comments; Nasdaq Falls