Planar Systems (PLNR) 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 Planar Systems ( PLNR) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Planar Systems as such a stock due to the following factors:

  • PLNR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.6 million.
  • PLNR has traded 452,860 shares today.
  • PLNR is trading at 9.98 times the normal volume for the stock at this time of day.
  • PLNR is trading at a new low 17.06% 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 PLNR:

Planar Systems, Inc., together with its subsidiaries, develops, manufactures, and markets electronic display products and systems. PLNR has a PE ratio of 42.8. Currently there are 2 analysts that rate Planar Systems a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Planar Systems has been 826,100 shares per day over the past 30 days. Planar Systems has a market cap of $170.9 million and is part of the technology sector and electronics industry. The stock has a beta of 2.33 and a short float of 7.8% with 2.25 days to cover. Shares are down 8.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Planar Systems as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 3.3%. Since the same quarter one year prior, revenues rose by 17.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • PLNR's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.25, which illustrates the ability to avoid short-term cash problems.
  • 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. When compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, PLANAR SYSTEMS INC's return on equity is below that of both the industry average and the S&P 500.
  • The gross profit margin for PLANAR SYSTEMS INC is currently lower than what is desirable, coming in at 26.22%. Regardless of PLNR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.17% trails the industry average.

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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