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

  • WIBC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.6 million.
  • WIBC has traded 109,295 shares today.
  • WIBC is trading at 5.66 times the normal volume for the stock at this time of day.
  • WIBC is trading at a new low 5.04% 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 WIBC:

Wilshire Bancorp, Inc. operates as the holding company for Wilshire Bank that offers a range of financial products and services. The company operates in three segments: Banking Operations, Small Business Administration Lending Services, and Trade Finance Services. The stock currently has a dividend yield of 2.2%. WIBC has a PE ratio of 13. Currently there is 1 analyst that rates Wilshire Bancorp a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Wilshire Bancorp has been 487,700 shares per day over the past 30 days. Wilshire has a market cap of $867.7 million and is part of the financial sector and banking industry. The stock has a beta of 1.57 and a short float of 4.3% with 8.98 days to cover. Shares are up 9.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Wilshire Bancorp as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 3.6%. Since the same quarter one year prior, revenues slightly increased by 8.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • WILSHIRE BANCORP INC has improved earnings per share by 5.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, WILSHIRE BANCORP INC increased its bottom line by earning $0.75 versus $0.63 in the prior year. This year, the market expects an improvement in earnings ($0.85 versus $0.75).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Commercial Banks industry average. The net income increased by 6.1% when compared to the same quarter one year prior, going from $14.66 million to $15.55 million.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • 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. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, WILSHIRE BANCORP INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

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