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.

Trade-Ideas LLC identified Bona Film Group ( BONA) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Bona Film Group as such a stock due to the following factors:

  • BONA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.2 million.
  • BONA has traded 57,367 shares today.
  • BONA is trading at 4.68 times the normal volume for the stock at this time of day.
  • BONA is trading at a new high 6.07% 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.

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More details on BONA:

Bona Film Group Limited, through its subsidiaries, operates as a film distributor in the People's Republic of China and internationally. The company operates through four segments: Film Distribution, Film Investment and Production, Talent Agency, and Movie Theater. BONA has a PE ratio of 66.9. Currently there are 2 analysts that rate Bona Film Group a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Bona Film Group has been 166,000 shares per day over the past 30 days. Bona Film Group has a market cap of $570.9 million and is part of the services sector and media industry. Shares are up 32.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Bona Film Group as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 7.2%. Since the same quarter one year prior, revenues rose by 23.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • 48.18% is the gross profit margin for BONA FILM GROUP LTD -ADR which we consider to be strong. 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 -3.01% is in-line with the industry average.
  • Compared to its closing price of one year ago, BONA's share price has jumped by 50.48%, exceeding the performance of the broader market during that same time frame. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • BONA FILM GROUP LTD -ADR 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. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, BONA FILM GROUP LTD -ADR reported lower earnings of $0.08 versus $0.10 in the prior year. This year, the market expects an improvement in earnings ($0.40 versus $0.08).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Media industry. The net income has significantly decreased by 478.8% when compared to the same quarter one year ago, falling from $0.42 million to -$1.59 million.

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