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

  • SALE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.1 million.
  • SALE has traded 201,269 shares today.
  • SALE is trading at 2.05 times the normal volume for the stock at this time of day.
  • SALE is trading at a new low 3.03% 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.

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

More details on SALE:

RetailMeNot, Inc. operates a digital coupon marketplace. Its marketplace connects consumers with retailers and brands. SALE has a PE ratio of 29. Currently there is 1 analyst that rates RetailMeNot a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for RetailMeNot has been 774,000 shares per day over the past 30 days. RetailMeNot has a market cap of $472.3 million and is part of the services sector and media industry. The stock has a beta of -0.65 and a short float of 4.8% with 1.08 days to cover. Shares are down 36.8% year-to-date as of the close of trading on Wednesday.

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 RetailMeNot as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow 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 Internet Software & Services industry. The net income has significantly decreased by 86.4% when compared to the same quarter one year ago, falling from $2.53 million to $0.34 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Internet Software & Services industry and the overall market, RETAILMENOT INC's return on equity is below that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $7.62 million or 49.54% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 30.84%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 80.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • SALE, with its decline in revenue, underperformed when compared the industry average of 15.1%. Since the same quarter one year prior, revenues slightly dropped by 7.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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.