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

  • SALE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.3 million.
  • SALE has traded 299,647 shares today.
  • SALE is trading at 12.92 times the normal volume for the stock at this time of day.
  • SALE is trading at a new high 4.13% 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 SALE:

RetailMeNot, Inc. operates a digital coupon marketplace. Its marketplace connects consumers with retailers and brands. SALE has a PE ratio of 26. Currently there is 1 analyst that rates RetailMeNot a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for RetailMeNot has been 804,500 shares per day over the past 30 days. RetailMeNot has a market cap of $420.4 million and is part of the services sector and media industry. The stock has a beta of -0.65 and a short float of 4.7% with 1.26 days to cover. Shares are down 41.4% year-to-date as of the close of trading on Tuesday.

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TheStreet Quant Ratings rates RetailMeNot as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, 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 Internet Software & Services industry. The net income has significantly decreased by 86.4% when compared to the same quarter one year ago, falling from $2.53 million to $0.34 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 Internet Software & Services industry and the overall market, RETAILMENOT INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Net operating cash flow has decreased to $7.62 million or 49.54% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 41.88%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 80.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • SALE, with its decline in revenue, underperformed when compared the industry average of 21.7%. Since the same quarter one year prior, revenues slightly dropped by 7.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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