Strong On High Relative Volume: Violin Memory (VMEM)

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

  • VMEM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.2 million.
  • VMEM has traded 141,338 shares today.
  • VMEM is trading at 2.19 times the normal volume for the stock at this time of day.
  • VMEM is trading at a new high 7.02% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in VMEM with the Ticky from Trade-Ideas. See the FREE profile for VMEM NOW at Trade-Ideas

More details on VMEM:

Violin Memory, Inc. develops and supplies memory-based storage systems to bring storage performance in line with high-speed applications, servers, and networks worldwide. Currently there is 1 analyst that rates Violin Memory a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Violin Memory has been 1.3 million shares per day over the past 30 days. Violin Memory has a market cap of $148.5 million and is part of the technology sector and computer hardware industry. Shares are down 62.8% year-to-date as of the close of trading on Friday.

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 Violin Memory as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • 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 Computers & Peripherals industry. The net income has significantly decreased by 189.8% when compared to the same quarter one year ago, falling from -$8.41 million to -$24.38 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 68.25%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 177.77% compared to the year-earlier 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.
  • The revenue fell significantly faster than the industry average of 36.9%. Since the same quarter one year prior, revenues fell by 17.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for VIOLIN MEMORY INC is rather high; currently it is at 57.65%. Regardless of VMEM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, VMEM's net profit margin of -159.32% significantly underperformed when compared to the industry average.
  • Net operating cash flow has increased to -$18.64 million or 38.62% when compared to the same quarter last year. Despite an increase in cash flow, VIOLIN MEMORY INC's cash flow growth rate is still lower than the industry average growth rate of 51.64%.

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.

More from Markets

Video: Here's What May Come Next for Theranos Founder and CEO Elizabeth Holmes

Video: Here's What May Come Next for Theranos Founder and CEO Elizabeth Holmes

Charlie Gasparino Says GE Is Reportedly Looking to Slash Its Dividend Again

Charlie Gasparino Says GE Is Reportedly Looking to Slash Its Dividend Again

GE Confirms $11.1 Billion Transportation Merger With Wabtec

GE Confirms $11.1 Billion Transportation Merger With Wabtec

Dow Leads Major Indices With Triple-Digit Rally

Dow Leads Major Indices With Triple-Digit Rally

Baidu Stock Plummets After COO Qi Lu Resignation

Baidu Stock Plummets After COO Qi Lu Resignation