Trade-Ideas LLC identified ( STMP) 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 as such a stock due to the following factors:

  • STMP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $83.1 million.
  • STMP has traded 3.0 million shares today.
  • STMP traded in a range 433.6% of the normal price range with a price range of $20.21.
  • STMP traded below its daily resistance level (quality: 3 days, meaning that the stock is crossing a resistance level set by the last 3 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 STMP: Inc. provides Internet-based postage solutions in the United States. Currently there are 3 analysts that rate a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for has been 663,900 shares per day over the past 30 days. has a market cap of $1.4 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.04 and a short float of 14.8% with 2.60 days to cover. Shares are down 23.1% year-to-date as of the close of trading on Monday.

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TheStreet Quant Ratings rates as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • STMP's very impressive revenue growth greatly exceeded the industry average of 20.7%. Since the same quarter one year prior, revenues leaped by 67.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to its closing price of one year ago, STMP's share price has jumped by 35.05%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, STMP should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The gross profit margin for STAMPS.COM INC is currently very high, coming in at 84.76%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -0.10% is in-line with the industry average.
  • STAMPS.COM INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, STAMPS.COM INC swung to a loss, reporting -$0.28 versus $2.24 in the prior year. This year, the market expects an improvement in earnings ($5.28 versus -$0.28).
  • STMP's debt-to-equity ratio of 0.68 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.97 is weak.

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