Trade-Ideas LLC identified 51job ( JOBS) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified 51job as such a stock due to the following factors:

  • JOBS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.1 million.
  • JOBS has traded 414,214 shares today.
  • JOBS is trading at 4.81 times the normal volume for the stock at this time of day.
  • JOBS is trading at a new low 4.22% 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 JOBS:

51job, Inc., through its subsidiaries, provides integrated human resource services in the People's Republic of China. JOBS has a PE ratio of 16.

The average volume for 51job has been 182,700 shares per day over the past 30 days. 51job has a market cap of $1.6 billion and is part of the services sector and diversified services industry. Shares are down 24.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates 51job 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 expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • JOBS's revenue growth has slightly outpaced the industry average of 4.8%. Since the same quarter one year prior, revenues slightly increased by 4.7%. 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.
  • The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 4.87, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for 51JOB INC -ADR is currently very high, coming in at 70.73%. Regardless of JOBS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, JOBS's net profit margin of 15.48% compares favorably to the industry average.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Professional Services industry and the overall market, 51JOB INC -ADR's return on equity is below that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 27.34%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 49.42% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.

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