Trade-Ideas LLC identified Time Warner Cable ( TWC) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Time Warner Cable as such a stock due to the following factors:

  • TWC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $203.5 million.
  • TWC has traded 1.3 million shares today.
  • TWC traded in a range 265.5% of the normal price range with a price range of $6.76.
  • TWC traded below its daily resistance level (quality: 49 days, meaning that the stock is crossing a resistance level set by the last 49 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on TWC:

Time Warner Cable Inc., together with its subsidiaries, provides video, high-speed data, and voice services in the United States. It operates in three segments: Residential Services, Business Services, and Other Operations. The stock currently has a dividend yield of 1.6%. TWC has a PE ratio of 28. Currently there are 7 analysts that rate Time Warner Cable a buy, 1 analyst rates it a sell, and 10 rate it a hold.

The average volume for Time Warner Cable has been 1.8 million shares per day over the past 30 days. Time Warner Cable has a market cap of $52.1 billion and is part of the services sector and media industry. The stock has a beta of 0.85 and a short float of 2.9% with 7.21 days to cover. Shares are up 21.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Time Warner Cable as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 7.0%. Since the same quarter one year prior, revenues slightly increased by 3.6%. 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.
  • Compared to its closing price of one year ago, TWC's share price has jumped by 38.43%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • Net operating cash flow has slightly increased to $1,500.00 million or 3.59% when compared to the same quarter last year. Despite an increase in cash flow, TIME WARNER CABLE INC's average is still marginally south of the industry average growth rate of 5.34%.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and the Media industry average. The net income has decreased by 12.4% when compared to the same quarter one year ago, dropping from $499.00 million to $437.00 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. In comparison to the other companies in the Media industry and the overall market, TIME WARNER CABLE INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.

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