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

  • BLL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $241.6 million.
  • BLL has traded 679,328 shares today.
  • BLL is trading at 6.61 times the normal volume for the stock at this time of day.
  • BLL is trading at a new low 3.00% 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 BLL:

Ball Corporation supplies metal packaging products to the beverage, food, personal care, and household industries worldwide. The stock currently has a dividend yield of 0.7%. BLL has a PE ratio of 31. Currently there are 4 analysts that rate Ball a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Ball has been 1.6 million shares per day over the past 30 days. Ball has a market cap of $10.1 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.23 and a short float of 11.7% with 4.76 days to cover. Shares are down 0.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Ball as a hold. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including deteriorating net income, generally higher debt management risk and weak operating cash flow.

Highlights from the ratings report include:
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 9.3%. Since the same quarter one year prior, revenues slightly dropped by 8.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • After a year of stock price fluctuations, the net result is that BLL's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry, implying reduced upside potential.
  • BALL CORP 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 reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, BALL CORP reported lower earnings of $1.99 versus $3.30 in the prior year. This year, the market expects an improvement in earnings ($3.61 versus $1.99).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Containers & Packaging industry. The net income has significantly decreased by 713.5% when compared to the same quarter one year ago, falling from $20.70 million to -$127.00 million.
  • Although BLL's debt-to-equity ratio of 5.43 is very high, it is currently less than that of the industry average. To add to this, BLL has a quick ratio of 0.55, this demonstrates the lack of ability of the company to cover short-term liquidity needs.

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