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

  • SPIL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.3 million.
  • SPIL has traded 169,258 shares today.
  • SPIL is trading at 3.18 times the normal volume for the stock at this time of day.
  • SPIL is trading at a new high 10.11% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in SPIL with the Ticky from Trade-Ideas. See the FREE profile for SPIL NOW at Trade-Ideas

More details on SPIL:

Siliconware Precision Industries Co., Ltd. provides semiconductor packaging and testing services to semiconductor suppliers worldwide. The stock currently has a dividend yield of 4.6%. SPIL has a PE ratio of 17.

The average volume for Siliconware Precision Industries has been 817,100 shares per day over the past 30 days. Siliconware Precision has a market cap of $4.7 billion and is part of the technology sector and electronics industry. Shares are down 3% 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 Siliconware Precision Industries as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.37, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.31, which illustrates the ability to avoid short-term cash problems.
  • 37.08% is the gross profit margin for SILICONWARE PRECISION INDS which we consider to be strong. Regardless of SPIL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 8.31% trails the industry average.
  • SILICONWARE PRECISION INDS 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 year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, SILICONWARE PRECISION INDS reported lower earnings of $0.42 versus $0.59 in the prior year. This year, the market expects an improvement in earnings ($0.43 versus $0.42).
  • SPIL, with its decline in revenue, slightly underperformed the industry average of 3.3%. Since the same quarter one year prior, revenues slightly dropped by 9.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The share price of SILICONWARE PRECISION INDS has not done very well: it is down 17.22% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Despite the stock's decline during the last year, it is still somewhat more expensive (in proportion to its earnings over the last year) than most other stocks in its industry. We feel, however, that other strengths this company displays offset this slight negative.

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.