Advanced Semiconductor Engineering (ASX) Highlighted As Weak On High Volume

Trade-Ideas LLC identified Advanced Semiconductor Engineering ( ASX) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Advanced Semiconductor Engineering as such a stock due to the following factors:

  • ASX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.4 million.
  • ASX has traded 486,901 shares today.
  • ASX is trading at 3.34 times the normal volume for the stock at this time of day.
  • ASX is trading at a new low 3.03% 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.

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More details on ASX:

Advanced Semiconductor Engineering, Inc. provides semiconductor packaging and testing services in the United States, Taiwan, Asia, Europe, and internationally. It operates through Packaging, Testing, and Electronic Manufacturing Services segments. The stock currently has a dividend yield of 3.9%. ASX has a PE ratio of 15. Currently there is 1 analyst that rates Advanced Semiconductor Engineering a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for Advanced Semiconductor Engineering has been 1.4 million shares per day over the past 30 days. Advanced Semiconductor Engineering has a market cap of $9.2 billion and is part of the technology sector and electronics industry. Shares are up 1.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Advanced Semiconductor Engineering as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including poor profit margins, a generally disappointing performance in the stock itself and deteriorating net income.

Highlights from the ratings report include:
  • ASX, with its decline in revenue, slightly underperformed the industry average of 3.3%. Since the same quarter one year prior, revenues slightly dropped by 6.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, ASX has underperformed the S&P 500 Index, declining 17.58% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The gross profit margin for ADVANCED SEMICON ENGINEERING is rather low; currently it is at 18.36%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 6.67% significantly trails the industry average.

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