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

  • STRZA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $82.2 million.
  • STRZA has traded 1.1 million shares today.
  • STRZA is trading at 4.56 times the normal volume for the stock at this time of day.
  • STRZA 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 STRZA with the Ticky from Trade-Ideas. See the FREE profile for STRZA NOW at Trade-Ideas

More details on STRZA:

Starz, through its subsidiaries, operates as a media and entertainment company worldwide. The company operates through Starz Networks and Starz Distribution segments. STRZA has a PE ratio of 14. Currently there are 5 analysts that rate Starz a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Starz has been 911,400 shares per day over the past 30 days. Starz has a market cap of $2.8 billion and is part of the services sector and media industry. The stock has a beta of 0.69 and a short float of 5.7% with 1.47 days to cover. Shares are down 10.7% year-to-date as of the close of trading on Thursday.

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 Starz as a hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • Net operating cash flow has significantly increased by 193.10% to $5.40 million when compared to the same quarter last year. In addition, STARZ has also vastly surpassed the industry average cash flow growth rate of 3.24%.
  • 49.94% is the gross profit margin for STARZ which we consider to be strong. Regardless of STRZA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, STRZA's net profit margin of 15.51% compares favorably to the industry average.
  • STRZA, with its decline in revenue, slightly underperformed the industry average of 4.6%. Since the same quarter one year prior, revenues slightly dropped by 4.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Media industry average. The net income has decreased by 20.8% when compared to the same quarter one year ago, dropping from $84.60 million to $67.00 million.
  • The debt-to-equity ratio is very high at 5.29 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, STRZA maintains a poor quick ratio of 0.98, which illustrates the inability to avoid short-term cash problems.

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.