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

  • GLUU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.5 million.
  • GLUU has traded 728,023 shares today.
  • GLUU is trading at 9.60 times the normal volume for the stock at this time of day.
  • GLUU is trading at a new high 6.11% 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.

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More details on GLUU:

Glu Mobile Inc. develops, publishes, and markets a portfolio of games for the smartphones and tablet devices users. The company offers free-to-play action, casual, racing, and sports genre mobile games. GLUU has a PE ratio of 52. Currently there are 6 analysts that rate Glu Mobile a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Glu Mobile has been 2.3 million shares per day over the past 30 days. Glu Mobile has a market cap of $538.3 million and is part of the technology sector and computer software & services industry. The stock has a beta of 3.58 and a short float of 14% with 5.44 days to cover. Shares are down 5.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Glu Mobile as a hold. The company's strengths can be seen in multiple areas, such as its robust 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, unimpressive growth in net income and weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 18.8%. Since the same quarter one year prior, revenues rose by 37.3%. 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.
  • GLUU has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.12, which clearly demonstrates the ability to cover short-term cash needs.
  • GLU MOBILE INC's earnings per share declined by 25.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GLU MOBILE INC turned its bottom line around by earning $0.07 versus -$0.28 in the prior year. This year, the market expects an improvement in earnings ($0.17 versus $0.07).
  • Net operating cash flow has significantly decreased to -$1.17 million or 123.60% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, GLUU has underperformed the S&P 500 Index, declining 7.51% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.

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