E-Commerce China Dangdang (DANG) Stock: Weak On High Volume Today

Trade-Ideas LLC identified E-Commerce China Dangdang ( DANG) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified E-Commerce China Dangdang as such a stock due to the following factors:

  • DANG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.5 million.
  • DANG has traded 135,461 shares today.
  • DANG is trading at 4.88 times the normal volume for the stock at this time of day.
  • DANG is trading at a new low 4.08% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in DANG with the Ticky from Trade-Ideas. See the FREE profile for DANG NOW at Trade-Ideas

More details on DANG:

E-Commerce China Dangdang Inc. operates as a business-to-consumer e-commerce company in the People's Republic of China. It primarily sells books, periodicals, electronic publications, consumer electronics, and audio-visual products through its Website dangdang.com. Currently there are no analysts that rate E-Commerce China Dangdang a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for E-Commerce China Dangdang has been 641,800 shares per day over the past 30 days. E-Commerce China Dangdang has a market cap of $532.5 million and is part of the services sector and retail industry. Shares are down 8.1% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates E-Commerce China Dangdang as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

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 & Catalog Retail industry. The net income has significantly decreased by 210.8% when compared to the same quarter one year ago, falling from $4.00 million to -$4.43 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Internet & Catalog Retail industry and the overall market, E-COMMERCE CH DANGDANG -ADR's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for E-COMMERCE CH DANGDANG -ADR is rather low; currently it is at 16.22%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.18% trails that of the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 26.86%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 220.00% 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.
  • E-COMMERCE CH DANGDANG -ADR 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, E-COMMERCE CH DANGDANG -ADR turned its bottom line around by earning $0.17 versus -$0.30 in the prior year. For the next year, the market is expecting a contraction of 788.2% in earnings (-$1.17 versus $0.17).

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Famed Chartist Marc Chaikin Gives Jim Cramer His Top Picks This Wednesday

Famed Chartist Marc Chaikin Gives Jim Cramer His Top Picks This Wednesday

Rewind: Jim Cramer on Trade, Pepsico, SodaStream, Estee Lauder and Nike

Rewind: Jim Cramer on Trade, Pepsico, SodaStream, Estee Lauder and Nike

How Alibaba Earnings and Jerome Powell's Jackson Hole Speech Could Move Markets

How Alibaba Earnings and Jerome Powell's Jackson Hole Speech Could Move Markets

Tesla Gets Major Price Target Slash From JPMorgan After Rough Weekend

Tesla Gets Major Price Target Slash From JPMorgan After Rough Weekend

Dow Leads Gains as Stocks End Higher

Dow Leads Gains as Stocks End Higher