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

  • TKC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.4 million.
  • TKC has traded 94,576 shares today.
  • TKC is trading at 2.26 times the normal volume for the stock at this time of day.
  • TKC 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 TKC:

Turkcell Iletisim Hizmetleri A.S. provides mobile telecommunication services for consumer, corporate, and wholesale customers. The company operates in two segments, Turkcell Turkey and Turkcell International. TKC has a PE ratio of 9. Currently there is 1 analyst that rates Turkcell Iletisim Hizmetleri AS a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Turkcell Iletisim Hizmetleri AS has been 313,300 shares per day over the past 30 days. Turkcell Iletisim Hizmetleri AS has a market cap of $7.8 billion and is part of the technology sector and telecommunications industry. Shares are up 1.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Turkcell Iletisim Hizmetleri AS as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Wireless Telecommunication Services industry. The net income increased by 313.7% when compared to the same quarter one year prior, rising from $48.08 million to $198.92 million.
  • TKC's debt-to-equity ratio is very low at 0.27 and is currently below that of the industry average, implying that there has been very 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.
  • Net operating cash flow has significantly increased by 103.56% to $10.32 million when compared to the same quarter last year. Despite an increase in cash flow, TURKCELL ILETISIM HIZMET's cash flow growth rate is still lower than the industry average growth rate of 115.45%.
  • TURKCELL ILETISIM HIZMET reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, TURKCELL ILETISIM HIZMET reported lower earnings of $0.79 versus $0.98 in the prior year. For the next year, the market is expecting a contraction of 5.2% in earnings ($0.75 versus $0.79).
  • TKC has underperformed the S&P 500 Index, declining 17.90% 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.

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