Trade-Ideas LLC identified SunEdison Semiconductor ( SEMI) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified SunEdison Semiconductor as such a stock due to the following factors:

  • SEMI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.8 million.
  • SEMI has traded 72,809 shares today.
  • SEMI is trading at 3.81 times the normal volume for the stock at this time of day.
  • SEMI is trading at a new low 5.09% 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 SEMI with the Ticky from Trade-Ideas. See the FREE profile for SEMI NOW at Trade-Ideas

More details on SEMI:

SunEdison Semiconductor Limited develops, manufactures, and sells silicon wafers for the semiconductor industry in the United States and internationally. Currently there are 2 analysts that rate SunEdison Semiconductor a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for SunEdison Semiconductor has been 411,900 shares per day over the past 30 days. SunEdison Semiconductor has a market cap of $318.1 million and is part of the technology sector and electronics industry. Shares are down 12.5% year-to-date as of the close of trading on Tuesday.

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 SunEdison Semiconductor as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins, weak operating cash flow, feeble growth in its earnings per share and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, SUNEDISON SEMICONDUCTOR LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for SUNEDISON SEMICONDUCTOR LTD is rather low; currently it is at 24.18%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -42.75% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to $8.40 million or 61.29% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • SUNEDISON SEMICONDUCTOR LTD' earnings per share from the most recent quarter came in slightly below the year earlier quarter. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, SUNEDISON SEMICONDUCTOR LTD reported poor results of -$2.17 versus -$0.84 in the prior year. For the next year, the market is expecting a contraction of 34.1% in earnings (-$2.91 versus -$2.17).
  • Looking at the price performance of SEMI's shares over the past 12 months, there is not much good news to report: the stock is down 71.23%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

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.