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

  • IRDM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.1 million.
  • IRDM has traded 103,022 shares today.
  • IRDM is trading at 3.49 times the normal volume for the stock at this time of day.
  • IRDM is trading at a new high 4.06% 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.

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

More details on IRDM:

Iridium Communications Inc. provides mobile voice and data communications services through satellite to businesses, the U.S. and foreign governments, non-governmental organizations, and consumers worldwide. IRDM has a PE ratio of 8. Currently there are 2 analysts that rate Iridium Communications a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Iridium Communications has been 786,300 shares per day over the past 30 days. Iridium has a market cap of $666.9 million and is part of the technology sector and telecommunications industry. The stock has a beta of 2.06 and a short float of 26.5% with 17.30 days to cover. Shares are down 15.1% 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 Iridium Communications as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 15.2%. Since the same quarter one year prior, revenues slightly increased by 5.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for IRIDIUM COMMUNICATIONS INC is currently very high, coming in at 75.16%. 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 -65.24% is in-line with the industry average.
  • IRIDIUM COMMUNICATIONS 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. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, IRIDIUM COMMUNICATIONS INC swung to a loss, reporting -$0.15 versus $0.69 in the prior year. This year, the market expects an improvement in earnings ($0.86 versus -$0.15).
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 28.22%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 505.26% compared to the year-earlier quarter. Looking ahead, the stock's sharp decline over the past year may have been what was needed in order to bring its value into alignment with its fundamentals and others in its industry.
  • 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 Diversified Telecommunication Services industry. The net income has significantly decreased by 401.4% when compared to the same quarter one year ago, falling from $23.04 million to -$69.43 million.

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.