Trade-Ideas LLC identified Qunar Cayman Islands ( QUNR) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Qunar Cayman Islands as such a stock due to the following factors:

  • QUNR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $84.9 million.
  • QUNR has traded 1.2 million shares today.
  • QUNR is trading at 12.73 times the normal volume for the stock at this time of day.
  • QUNR is trading at a new high 18.00% 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 QUNR:

Qunar Cayman Islands Limited operates an online travel commerce platform in the People's Republic of China. Currently there are 2 analysts that rate Qunar Cayman Islands a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Qunar Cayman Islands has been 2.8 million shares per day over the past 30 days. Qunar Cayman Islands has a market cap of $4.9 billion and is part of the services sector and leisure industry. Shares are down 27.7% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Qunar Cayman Islands as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and generally high debt management risk.

Highlights from the ratings report include:
  • QUNAR CAYMAN ISLANDS -ADR's earnings per share declined by 11.5% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, QUNAR CAYMAN ISLANDS -ADR reported poor results of -$2.53 versus -$0.24 in the prior year. For the next year, the market is expecting a contraction of 588.1% in earnings (-$17.41 versus -$2.53).
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Internet & Catalog Retail industry average. The net income has significantly decreased by 25.3% when compared to the same quarter one year ago, falling from -$92.25 million to -$115.62 million.
  • The debt-to-equity ratio is very high at 2.91 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, QUNR's quick ratio is somewhat strong at 1.45, demonstrating the ability to handle short-term liquidity needs.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Internet & Catalog Retail industry and the overall market, QUNAR CAYMAN ISLANDS -ADR's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for QUNAR CAYMAN ISLANDS -ADR is rather high; currently it is at 64.57%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, QUNR's net profit margin of -55.45% significantly underperformed when compared to the industry average.

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