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

  • SKM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.1 million.
  • SKM has traded 193,090 shares today.
  • SKM is trading at 5.38 times the normal volume for the stock at this time of day.
  • SKM is trading at a new high 3.02% 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 SKM:

SK Telecom Co., Ltd. provides wireless telecommunications services in Korea. The stock currently has a dividend yield of 3%. SKM has a PE ratio of 11. Currently there is 1 analyst that rates SK Telecom a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for SK Telecom has been 608,000 shares per day over the past 30 days. SK Telecom has a market cap of $15.3 billion and is part of the technology sector and telecommunications industry. Shares are down 9.3% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates SK Telecom as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, attractive valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Wireless Telecommunication Services industry. The net income increased by 58.3% when compared to the same quarter one year prior, rising from $253.43 million to $401.27 million.
  • Net operating cash flow has increased to $420.34 million or 14.90% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -33.55%.
  • The current debt-to-equity ratio, 0.50, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.84 is somewhat weak and could be cause for future problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Wireless Telecommunication Services industry and the overall market, SK TELECOM CO LTD's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

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