Trade-Ideas LLC identified EMC ( EMC) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified EMC as such a stock due to the following factors:

  • EMC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $210.8 million.
  • EMC has traded 5.9 million shares today.
  • EMC traded in a range 226.9% of the normal price range with a price range of $0.58.
  • EMC traded below its daily resistance level (quality: 41 days, meaning that the stock is crossing a resistance level set by the last 41 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on EMC:

EMC Corporation develops, delivers, and supports information infrastructure and virtual infrastructure technologies, solutions, and services. The stock currently has a dividend yield of 1.7%. EMC has a PE ratio of 26. Currently there are 11 analysts that rate EMC a buy, no analysts rate it a sell, and 12 rate it a hold.

The average volume for EMC has been 12.6 million shares per day over the past 30 days. EMC has a market cap of $51.4 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 0.99 and a short float of 0.8% with 1.81 days to cover. Shares are up 2.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates EMC as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • EMC, with its decline in revenue, slightly underperformed the industry average of 2.6%. Since the same quarter one year prior, revenues slightly dropped by 0.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Despite currently having a low debt-to-equity ratio of 0.32, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.03 is sturdy.
  • 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 Computers & Peripherals industry. The net income has significantly decreased by 32.7% when compared to the same quarter one year ago, falling from $1,146.00 million to $771.00 million.
  • 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. In comparison to the other companies in the Computers & Peripherals industry and the overall market, EMC CORP/MA's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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