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

  • BDBD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.1 million.
  • BDBD has traded 50,639 shares today.
  • BDBD is trading at 2.20 times the normal volume for the stock at this time of day.
  • BDBD is trading at a new low 3.05% 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 BDBD:

Boulder Brands Inc. provides health and wellness food solutions in the United States and Canada. The company operates in two segments, Natural and Balance. Currently there are 4 analysts that rate Boulder Brands a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Boulder Brands has been 683,700 shares per day over the past 30 days. Boulder has a market cap of $535.6 million and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.99 and a short float of 22% with 35.41 days to cover. Shares are down 19.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Boulder Brands as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally high debt management risk and feeble growth in its earnings per share.

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 Food Products industry. The net income has significantly decreased by 219.7% when compared to the same quarter one year ago, falling from $2.79 million to -$3.34 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Food Products industry and the overall market, BOULDER BRANDS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The debt-to-equity ratio of 1.24 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, BDBD's quick ratio is somewhat strong at 1.14, demonstrating the ability to handle short-term liquidity needs.
  • BOULDER BRANDS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, BOULDER BRANDS INC swung to a loss, reporting -$2.09 versus $0.16 in the prior year. This year, the market expects an improvement in earnings ($0.20 versus -$2.09).
  • BDBD, with its decline in revenue, slightly underperformed the industry average of 9.3%. Since the same quarter one year prior, revenues fell by 10.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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