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

  • MEG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.4 million.
  • MEG has traded 75,935 shares today.
  • MEG is trading at 2.81 times the normal volume for the stock at this time of day.
  • MEG is trading at a new high 3.07% 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 MEG with the Ticky from Trade-Ideas. See the FREE profile for MEG NOW at Trade-Ideas

More details on MEG:

Media General, Inc. owns and operates broadcast television stations, and related Websites and mobile news applications in the United States. MEG has a PE ratio of 26.4. Currently there are 3 analysts that rate Media General a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Media General has been 899,500 shares per day over the past 30 days. Media General has a market cap of $2.0 billion and is part of the services sector and media industry. The stock has a beta of 2.13 and a short float of 13.1% with 6.36 days to cover. Shares are down 7.4% year-to-date as of the close of trading on Thursday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Media General as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • MEG has underperformed the S&P 500 Index, declining 17.57% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • MEDIA GENERAL INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, MEDIA GENERAL INC turned its bottom line around by earning $0.58 versus -$0.10 in the prior year. For the next year, the market is expecting a contraction of 6.9% in earnings ($0.54 versus $0.58).
  • Despite the current debt-to-equity ratio of 1.62, it is still below the industry average, suggesting that this level of debt is acceptable within the Media industry. Despite the fact that MEG's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.28 is high and demonstrates strong liquidity.
  • Compared to other companies in the Media industry and the overall market, MEDIA GENERAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for MEDIA GENERAL INC is rather high; currently it is at 69.64%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 12.89% trails the industry average.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

null