Strong On High Relative Volume: Isle Of Capri Casinos (ISLE)

Trade-Ideas LLC identified Isle of Capri Casinos ( ISLE) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Isle of Capri Casinos as such a stock due to the following factors:

  • ISLE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.0 million.
  • ISLE has traded 88,426 shares today.
  • ISLE is trading at 5.42 times the normal volume for the stock at this time of day.
  • ISLE is trading at a new high 9.04% 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 ISLE:

Isle of Capri Casinos, Inc., together with its subsidiaries, develops, owns, and operates branded gaming facilities and related dining, lodging, and entertainment facilities in the United States. ISLE has a PE ratio of 25. Currently there are 2 analysts that rate Isle of Capri Casinos a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Isle of Capri Casinos has been 390,200 shares per day over the past 30 days. Isle of Capri Casinos has a market cap of $591.2 million and is part of the services sector and leisure industry. The stock has a beta of 0.52 and a short float of 3.4% with 1.48 days to cover. Shares are up 75.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Isle of Capri Casinos as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and revenue growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Highlights from the ratings report include:
  • This stock has managed to rise its share value by 89.19% over the past twelve months. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • ISLE OF CAPRI CASINOS INC has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ISLE OF CAPRI CASINOS INC turned its bottom line around by earning $0.17 versus -$3.25 in the prior year. This year, the market expects an improvement in earnings ($1.31 versus $0.17).
  • 45.70% is the gross profit margin for ISLE OF CAPRI CASINOS INC which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, ISLE's net profit margin of 4.84% significantly trails the industry average.
  • The debt-to-equity ratio is very high at 22.94 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, ISLE has a quick ratio of 0.65, this demonstrates the lack of ability of the company to cover short-term liquidity needs.

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