Trade-Ideas LLC identified Glu Mobile ( GLUU) as a weak 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 $9.1 million.
  • GLUU has traded 380,715 shares today.
  • GLUU is trading at 2.35 times the normal volume for the stock at this time of day.
  • GLUU is trading at a new low 3.19% 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.

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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. Currently there are 6 analysts that rate Glu Mobile a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Glu Mobile has been 2.7 million shares per day over the past 30 days. Glu Mobile has a market cap of $292.7 million and is part of the technology sector and computer software & services industry. The stock has a beta of 2.63 and a short float of 13.7% with 3.80 days to cover. Shares are down 35.8% year-to-date as of the close of trading on Wednesday.

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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 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 deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • 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 3.08, which clearly demonstrates the ability to cover short-term cash needs.
  • Despite the weak revenue results, GLUU has outperformed against the industry average of 16.7%. Since the same quarter one year prior, revenues slightly dropped by 2.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • GLU MOBILE INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings 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 earnings to be in line with last year ($0.07 versus $0.07).
  • Net operating cash flow has significantly decreased to -$7.82 million or 415.87% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 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. Compared to other companies in the Software industry and the overall market, GLU MOBILE INC's return on equity significantly trails that of both the industry average and the S&P 500.

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