Trade-Ideas LLC identified Bank of Nova Scotia ( BNS) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Bank of Nova Scotia as such a stock due to the following factors:

  • BNS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $65.0 million.
  • BNS has traded 162,535 shares today.
  • BNS is trading at 2.42 times the normal volume for the stock at this time of day.
  • BNS is trading at a new low 3.01% 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 BNS:

The Bank of Nova Scotia provides various personal, commercial, corporate, and investment banking services in Canada and internationally. The stock currently has a dividend yield of 4.6%. BNS has a PE ratio of 1. Currently there are 2 analysts that rate Bank of Nova Scotia a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Bank of Nova Scotia has been 862,200 shares per day over the past 30 days. Bank of Nova Scotia has a market cap of $54.9 billion and is part of the financial sector and banking industry. Shares are down 20.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Bank of Nova Scotia as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • Net operating cash flow has significantly decreased to -$2,077.00 million or 128.90% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • BNS's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 31.95%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • BANK OF NOVA SCOTIA's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, BANK OF NOVA SCOTIA increased its bottom line by earning $5.66 versus $1.29 in the prior year.
  • The gross profit margin for BANK OF NOVA SCOTIA is currently very high, coming in at 73.25%. Regardless of BNS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BNS's net profit margin of 22.96% compares favorably to the industry average.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Commercial Banks industry average. The net income increased by 0.9% when compared to the same quarter one year prior, going from $1,742.00 million to $1,757.00 million.

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