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 $21.1 million.
  • GLUU has traded 1.1 million shares today.
  • GLUU is trading at 3.29 times the normal volume for the stock at this time of day.
  • GLUU is trading at a new low 4.10% 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 7 analysts that rate Glu Mobile a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Glu Mobile has been 3.1 million shares per day over the past 30 days. Glu Mobile has a market cap of $490.9 million and is part of the technology sector and computer software & services industry. The stock has a beta of 2.69 and a short float of 13.6% with 2.50 days to cover. Shares are up 60.5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Glu Mobile 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, disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • 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. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, GLU MOBILE INC swung to a loss, reporting -$0.06 versus $0.07 in the prior year. For the next year, the market is expecting a contraction of 66.7% in earnings (-$0.10 versus -$0.06).
  • 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 Software industry. The net income has significantly decreased by 314.5% when compared to the same quarter one year ago, falling from $1.38 million to -$2.96 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. 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.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 26.96%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 300.00% 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.
  • GLUU, with its decline in revenue, slightly underperformed the industry average of 6.3%. Since the same quarter one year prior, revenues fell by 16.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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