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

  • IILG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $61.5 million.
  • IILG has traded 363,189 shares today.
  • IILG is trading at 5.40 times the normal volume for the stock at this time of day.
  • IILG is trading at a new low 3.01% 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 IILG with the Ticky from Trade-Ideas. See the FREE profile for IILG NOW at Trade-Ideas

More details on IILG:

Interval Leisure Group, Inc., together with its subsidiaries, provides non-traditional lodging covering a portfolio of leisure businesses from vacation exchange and rental to vacation ownership. The company operates through two segments, Exchange and Rental, and Vacation Ownership. The stock currently has a dividend yield of 3.3%. IILG has a PE ratio of 12. Currently there are 3 analysts that rate Interval Leisure Group a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Interval Leisure Group has been 1.9 million shares per day over the past 30 days. Interval Leisure Group has a market cap of $839.6 million and is part of the services sector and diversified services industry. The stock has a beta of 1.58 and a short float of 50.8% with 4.66 days to cover. Shares are down 4.4% year-to-date as of the close of trading on Monday.

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 Interval Leisure Group as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and disappointing return on equity.

Highlights from the ratings report include:
  • IILG's revenue growth trails the industry average of 11.5%. Since the same quarter one year prior, revenues slightly increased by 0.7%. 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.
  • The debt-to-equity ratio is somewhat low, currently at 0.91, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.43 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • Net operating cash flow has decreased to $40.11 million or 38.01% 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.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Hotels, Restaurants & Leisure industry average, but is greater than that of the S&P 500. The net income has decreased by 12.2% when compared to the same quarter one year ago, dropping from $25.26 million to $22.18 million.

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.