Trade-Ideas LLC identified VimpelCom ( VIP) as a strong on high relative volume 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 $9.6 million.
  • VIP has traded 234,640 shares today.
  • VIP is trading at 3.09 times the normal volume for the stock at this time of day.
  • VIP is trading at a new high 6.23% 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 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 3.8 million shares per day over the past 30 days. VimpelCom has a market cap of $6.0 billion and is part of the technology sector and telecommunications industry. Shares are up 2.7% year-to-date as of the close of trading on Tuesday.

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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 -45.98%.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 27.65%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 383.33% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • 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.

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