Tim Participacoes (TSU) Strong On High Relative Volume Today

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

  • TSU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.9 million.
  • TSU has traded 437,768 shares today.
  • TSU is trading at 9.23 times the normal volume for the stock at this time of day.
  • TSU is trading at a new high 7.16% 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.

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More details on TSU:

TIM Participacoes S.A., through its subsidiaries, provides mobile telecommunication services for residential and business customers in Brazil. The company offers mobile, fixed, and long distance telephony; data transmission; and broadband services. The stock currently has a dividend yield of 1.9%. TSU has a PE ratio of 7. Currently there is 1 analyst that rates Tim Participacoes a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Tim Participacoes has been 1.2 million shares per day over the past 30 days. Tim Participacoes has a market cap of $5.4 billion and is part of the technology sector and telecommunications industry. Shares are up 26.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Tim Participacoes as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow.

Highlights from the ratings report include:
  • The gross profit margin for TIM PARTICIPACOES SA is currently very high, coming in at 73.80%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 11.45% trails the industry average.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Wireless Telecommunication Services industry and the overall market on the basis of return on equity, TIM PARTICIPACOES SA has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Wireless Telecommunication Services industry average. The net income has decreased by 13.6% when compared to the same quarter one year ago, dropping from $138.58 million to $119.72 million.
  • Net operating cash flow has significantly decreased to $598.32 million or 58.10% 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.

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