Trade-Ideas LLC identified VimpelCom ( VIP) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified VimpelCom as such a stock due to the following factors:

  • VIP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.0 million.
  • VIP has traded 1.5 million shares today.
  • VIP is up 4% today.
  • VIP was down 5% yesterday.

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

More details on VIP:

VimpelCom Ltd. provides telecommunications services in Italy, Russia, Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Armenia, Georgia, Kyrgyzstan, Laos, Algeria, Bangladesh, and Pakistan. The stock currently has a dividend yield of 0.8%. Currently there are 3 analysts that rate VimpelCom a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for VimpelCom has been 2.6 million shares per day over the past 30 days. VimpelCom has a market cap of $5.8 billion and is part of the technology sector and telecommunications industry. Shares are down 24.1% 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 VimpelCom as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, 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 Wireless Telecommunication Services industry. The net income has significantly decreased by 1057.1% when compared to the same quarter one year ago, falling from $105.00 million to -$1,005.00 million.
  • The debt-to-equity ratio is very high at 2.29 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, VIP maintains a poor quick ratio of 0.79, which illustrates the inability to avoid short-term cash problems.
  • Net operating cash flow has decreased to $1,089.00 million or 32.36% when compared to the same quarter last year. Despite a decrease in cash flow VIMPELCOM LTD is still fairing well by exceeding its industry average cash flow growth rate of -50.83%.
  • The share price of VIMPELCOM LTD has not done very well: it is down 19.96% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Wireless Telecommunication Services industry and the overall market, VIMPELCOM LTD's return on equity significantly trails that of both the industry average and the S&P 500.

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.