Trade-Ideas LLC identified Monster Worldwide ( MWW) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Monster Worldwide as such a stock due to the following factors:
- MWW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.6 million.
- MWW has traded 419,344 shares today.
- MWW is trading at 12.82 times the normal volume for the stock at this time of day.
- MWW is trading at a new low 10.13% 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 MWW with the Ticky from Trade-Ideas. See the FREE profile for MWW NOW at Trade-Ideas More details on MWW: Monster Worldwide, Inc., together with its subsidiaries, provides online and mobile employment and recruitment solutions worldwide. The company operates in three segments: Careers-North America, Careers-International, and Internet Advertising & Fees. MWW has a PE ratio of 23. Currently there are 2 analysts that rate Monster Worldwide a buy, no analysts rate it a sell, and 2 rate it a hold. The average volume for Monster Worldwide has been 1.7 million shares per day over the past 30 days. Monster Worldwide has a market cap of $287.7 million and is part of the services sector and diversified services industry. The stock has a beta of 2.57 and a short float of 16.9% with 7.37 days to cover. Shares are down 46.6% 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 Monster Worldwide as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and weak operating cash flow. Highlights from the ratings report include:
- MWW's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 46.84%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
- Net operating cash flow has decreased to $18.67 million or 30.86% 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 company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Internet Software & Services industry and the overall market, MONSTER WORLDWIDE INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- The gross profit margin for MONSTER WORLDWIDE INC is rather low; currently it is at 17.98%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, MWW's net profit margin of 35.21% significantly outperformed against the industry.
- MWW, with its decline in revenue, underperformed when compared the industry average of 20.6%. Since the same quarter one year prior, revenues slightly dropped by 9.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full Monster Worldwide Ratings Report.
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