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

  • SID has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.5 million.
  • SID has traded 878,328 shares today.
  • SID is trading at 16.01 times the normal volume for the stock at this time of day.
  • SID is trading at a new high 10.15% 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 SID with the Ticky from Trade-Ideas. See the FREE profile for SID NOW at Trade-Ideas

More details on SID:

Companhia Siderurgica Nacional produces steel. The company operates through five segments including steel, mining, cement, logistics, and energy. The stock currently has a dividend yield of 8.3%. SID has a PE ratio of 11. Currently there are no analysts that rate Companhia Siderurgica Nacional a buy, 3 analysts rate it a sell, and none rate it a hold.

The average volume for Companhia Siderurgica Nacional has been 1.3 million shares per day over the past 30 days. Companhia Siderurgica Nacional has a market cap of $2.3 billion and is part of the basic materials sector and metals & mining industry. Shares are up 101.9% year-to-date as of the close of trading on Friday.

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 Companhia Siderurgica Nacional as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow, generally high debt management risk and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • The gross profit margin for COMPANHIA SIDERURGICA NACION is currently lower than what is desirable, coming in at 31.06%. It has decreased from the same quarter the previous year.
  • Net operating cash flow has significantly decreased to -$23.32 million or 141.53% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The debt-to-equity ratio is very high at 9.49 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 2.61, which shows the ability to cover short-term cash needs.
  • COMPANHIA SIDERURGICA NACION reported significant earnings per share improvement in the most recent quarter compared to 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, COMPANHIA SIDERURGICA NACION swung to a loss, reporting -$0.16 versus $0.15 in the prior year. For the next year, the market is expecting a contraction of 437.5% in earnings (-$0.86 versus -$0.16).
  • After a year of stock price fluctuations, the net result is that SID's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

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.