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

  • VIP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.1 million.
  • VIP has traded 171,803 shares today.
  • VIP is trading at 2.04 times the normal volume for the stock at this time of day.
  • VIP is trading at a new high 3.02% 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.

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More details on VIP:

VimpelCom Ltd. provides mobile telecommunications services in Russia, Algeria, Pakistan, Bangladesh, Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Italy, Armenia, Georgia, Kyrgyzstan, and Laos. The stock currently has a dividend yield of 0.7%. Currently there are 4 analysts that rate VimpelCom a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for VimpelCom has been 932,700 shares per day over the past 30 days. VimpelCom has a market cap of $6.7 billion and is part of the technology sector and telecommunications industry. Shares are up 16.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates VimpelCom as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • The debt-to-equity ratio is very high at 2.47 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, VIP maintains a poor quick ratio of 0.80, which illustrates the inability to avoid short-term cash problems.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Wireless Telecommunication Services industry and the overall market, VIMPELCOM LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • VIP has underperformed the S&P 500 Index, declining 21.94% 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.
  • VIP, with its decline in revenue, slightly underperformed the industry average of 5.9%. Since the same quarter one year prior, revenues fell by 12.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Net operating cash flow has significantly increased by 68.84% to -$238.00 million when compared to the same quarter last year. Despite an increase in cash flow, VIMPELCOM LTD's cash flow growth rate is still lower than the industry average growth rate of 114.89%.

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