Isle Of Capri Casinos (ISLE) Weak On High Volume

Trade-Ideas LLC identified Isle of Capri Casinos ( ISLE) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Isle of Capri Casinos as such a stock due to the following factors:

  • ISLE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.1 million.
  • ISLE has traded 65,308 shares today.
  • ISLE is trading at 5.82 times the normal volume for the stock at this time of day.
  • ISLE is trading at a new low 11.08% 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 ISLE:

Isle of Capri Casinos, Inc., together with its subsidiaries, develops, owns, and operates branded gaming facilities and related dining, lodging, and entertainment facilities in the United States. ISLE has a PE ratio of 21. Currently there are 4 analysts that rate Isle of Capri Casinos a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Isle of Capri Casinos has been 353,000 shares per day over the past 30 days. Isle of Capri Casinos has a market cap of $481.0 million and is part of the services sector and leisure industry. The stock has a beta of 0.66 and a short float of 3.4% with 3.02 days to cover. Shares are down 15.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Isle of Capri Casinos as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and notable return on equity. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Highlights from the ratings report include:
  • ISLE OF CAPRI CASINOS INC has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ISLE OF CAPRI CASINOS INC turned its bottom line around by earning $0.17 versus -$3.25 in the prior year. This year, the market expects an improvement in earnings ($1.31 versus $0.17).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 1221.4% when compared to the same quarter one year prior, rising from -$1.02 million to $11.45 million.
  • 45.70% is the gross profit margin for ISLE OF CAPRI CASINOS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.84% trails the industry average.
  • This stock has managed to rise its share value by 15.65% over the past twelve months. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
  • The debt-to-equity ratio is very high at 22.94 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, ISLE has a quick ratio of 0.65, this demonstrates the lack of ability of the company to cover short-term liquidity needs.

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