DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.
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Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."
Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.
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With that in mind, let's take a look at several stocks rising on unusual volume recently.
Best Cheapest Stocks To Buy For 2015: Alaska Air Group Inc. (ALK)
Alaska Air Group, Inc., through its subsidiaries, Alaska Airlines, Inc. and Horizon Air Industries, Inc., operates as an airline company serving destinations in the western United States, Canada, and Mexico. The company provides passenger air services; and freight and mail services primarily to and within the state of Alaska and on the West Coast. As of December 31, 2009, it operated a fleet of 110 jet aircraft; and Horizon Air Industries operated a fleet of 18 jets and 40 turboprop aircraft. The company was founded in 1932 and is based in Seattle, Washington.
Advisors' Opinion:- [By Adam Levine-Weinberg]
Unintended consequences?
As I detailed last month, virtually every major U.S. airline is participating in the upgauging trend. Some, like JetBlue Airways (NASDAQ: JBLU ) , are expanding their fleets with larger aircraft than they have previously flown. Others, including Alaska Air (NYSE: ALK ) , are retrofitting existing planes to fit more seats onboard. Southwest Airlines (NYSE: LUV ) is doing both of these things! Others, like Delta Air Lines (NYSE: DAL ) , are buying larger planes to replace smaller ones that are being removed from service. - [By Ben Levisohn]
Sure that gain is huge, both on its own terms and relative to its competitors. Delta has outgained nearly all its peers, as Southwest Airlines (LUV) has gained 82% in 2013, Alaska Air (ALK) has risen 68% and United Continental (UAL) is up 61%. Spirit Airlines (SAVE), with a 144% rise, was one of the few airlines to trump Delta.
- [By Ben Levisohn]
Shares of American Airlines (AAL) have dropped 7% this week, while Delta Air Lines (DAL) has fallen 6.3%, United Continental (UAL) has slid 10%, Southwest Airlines (LUV) has declined 4.9% and Alaska Air (ALK) is off 4.5%.
- [By Ben Levisohn]
Spirit Airlines (SAVE), Delta Air Lines (DAL),�Alaska Air (ALK) and American Airlines (AAL) ranked behind Allegiant and all had ROIC ��WACC spreads that were 4 ��5 points. We are of the view that an airline with ROIC – WACC spread of at least 3 points (based on the industry�� historical WACC) has sufficient flexibility to pay down debt, re-invest in the business, and pursue pro-shareholder initiatives. If current trends hold, we believe United Continental (UAL) with a 2.3 point spread (produced in 2013) will be well-positioned to return capital to shareholders by 2015.
Best Net Payout Yield Companies To Buy Right Now: Discover Financial Services(DFS)
Discover Financial Services, a bank holding company, offers direct banking and payment services in the United States. It operates in two segments, Direct Banking and Payment Services. The Direct Banking segment offers Discover card-branded credit cards to individuals and small businesses that are accepted on the Discover Network. This segment also provides other consumer banking products and services, including personal loans, student loans, and prepaid cards, as well as other consumer lending and deposit products, such as certificates of deposit, money market accounts, online savings accounts, and individual retirement account. The Payment Services segment operates the PULSE network, an automated teller machine, debit, and electronic funds transfer network; the Diners Club International network, a global payments network; and third-party issuing business, which includes credit, debit, and prepaid cards issued on the Discover Network by third parties. The company was found ed in 1986 and is based in Riverwoods, Illinois.
Advisors' Opinion:- [By Bloomberg]
Alamy More U.S. banks may soon give free FICO credit scores to millions of card customers along with their monthly bills as Discover Financial Services (DFS) extends the offering to all of its cardholders. FICO (FICO), formerly known as Fair Isaac Corp., is negotiating with some of the largest credit-card issuers, Anthony Sprauve, the San Jose, California-based firm's senior consumer-credit specialist, said in a phone interview, declining to identify the banks. Discover, which began providing the scores to some clients in November, will now furnish them to all consumer cardholders, the lender said in an e-mailed statement. 'Jammed Space' on Statements "It really does come down to the technology-implementation challenges," Sprauve said. "You're talking about millions of customers, a tremendous amount of data, and how do you squeeze more data in an already jammed space" on monthly statements, he said. FICO scores are used in lending decisions, such as for issuing credit cards or setting interest rates on home loans, and are the most widely used credit-scoring formula in the U.S. They previously were available at a cost or through online trial subscriptions.
- [By Alex Planes]
But does this really mean anything? As my fellow Fool Morgan Housel recently pointed out, Visa's credit cards in circulation are essentially unchanged from 2009 (although debit cards continue to grow in number). Credit card debt per capita in the United States is also lower than it's been since 1996. This should be very bad news for Visa and fellow payments processors MasterCard (NYSE: MA ) , American Express (NYSE: AXP ) , and Discover (NYSE: DFS ) , which all draw from the same pool of consumers, and which tend to benefit from the expansion of credit debt outstanding.
Best Net Payout Yield Companies To Buy Right Now: Ocado Group PLC (OCDO)
Ocado Group plc is a United Kingdom-based holding company. The Company�� principal activities are the retailing, logistics and distribution of grocery and consumer goods and the development and monetisation of intellectual property and technology for the online retailing, logistics and distribution of these goods. The Company is an online grocery retailer. The Company�� subsidiaries include Ocado Holdings Limited, Ocado Limited, Ocado Information Technology Limited, Last Mile Developments Limited and Last Mile Developments Limited. Advisors' Opinion:- [By Sarah Jones]
Rio Tinto Group and Anglo American Plc (AAL) retreated more than 2.5 percent as copper and lead declined. Eurasian Natural Resources Corp. (ENRC) sank 6.8 percent as analysts downgraded the shares. Standard Life Plc slipped 1.2 percent as Chief Financial Officer Jackie Hunt resigned to move to a rival insurer. Ocado Group Plc (OCDO) fell for the first day this week as the online grocer ruled out a takeover by William Morrison Supermarkets Plc.
Best Net Payout Yield Companies To Buy Right Now: AIA Group Ltd (AAIGF.PK)
AIA Group Limited is an investment holding company. The Company and its subsidiaries are engaged in provision of products and services to individuals and businesses for their insurance, protection, savings, investment and retirement needs. The Company operates life insurance business, providing life, pensions, and accident and health products to customers in its local market, and distributes related investment and other financial services products. The Company serves more than 100,000 corporate clients with more than 13 million group insurance scheme members. It has operations in Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Indonesia, Vietnam, India, Australia, Taiwan, New Zealand, Macau and Brunei. As of November 30, 2012, its subsidiaries included American International Assurance Company, Limited (AIA Co.), American International Assurance Company (Bermuda) Limited (AIA-B), AIA Australia Limited and PT AIA Financial, among others. Advisors' Opinion:- [By Holly LaFon]
Berkowitz�� top holdings continue to be: American International Group Inc. (AIG), AIA Group Ltd. (AAIGF.PK), Sears Holdings Corp. (SHLD), Berkshire Hathaway Inc. (BRK.B) and Brookfield Asset Management Inc. (BAM).
Best Net Payout Yield Companies To Buy Right Now: Invesco Mortgage Capital Inc (IVR)
Invesco Mortgage Capital Inc., incorporated in June 2008, is a real estate investment trust (REIT). The Company is primarily focused on investing in, financing and managing residential and commercial mortgage-backed securities and mortgage loans, which it collectively refers to as its target assets. The Company�� target assets consist of residential mortgage-backed securities (RMBS) for which the United States Government agency, such as the Government National Mortgage Association (Ginnie Mae) or a federally chartered corporation, such as the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac) guarantees payments of principal and interest on the securities. It refers to these securities as Agency RMBS. Its Agency RMBS investments include mortgage pass-through securities and may include collateralized mortgage obligations (CMOs). It also invests in RMBS that are not issued or guaranteed by the United States Government agency (non-Agency RMBS), commercial mortgage-backed securities (CMBS) and residential and commercial mortgage loans.
The Company finances its Agency RMBS, non-Agency RMBS and CMBS investments through short-term borrowings structured as repurchase agreements. The Company�� manager is Invesco Advisors Inc. The Company also finances its investments in certain non-Agency RMBS, CMBS and residential and commercial mortgage loans by contributing capital to the Invesco Mortgage Recovery Feeder Fund (Invesco IMRF Fund) that invests in public-private investment funds (PPIF) managed by the Company�� manager. The Company's manager is a wholly owned subsidiary of Invesco Ltd.
Advisors' Opinion:- [By Monica Wolfe]
Invesco Mortgage Capital (IVR)
President and CEO of Invesco Richard King reported a rather notable insider buy on Aug. 5. The CEO purchased 6,500 shares of company stock at an average price of $15.41 per share. This purchase cost King a total of $100,165. Since this buy, the share price has increased a minor 0.13%. King now holds on to at least 56,545 shares of Invesco Mortgage stock.
- [By Amanda Alix]
Analysts at odds over mREITs
Financial analysts have been busy noting the underperformance of mREITs lately, especially since the Fed dropped the QE3 taper bombshell almost two weeks ago -- immediately igniting fears of rising interest rates, which would decrease the value of the trusts' legacy assets, thus dinging book values. The pain hasn't been limited to the stocks mentioned above,� as CYS Investments (NYSE: CYS ) , and even hybrids like Invesco (NYSE: IVR ) , have been on a roller-coaster ride ever since.
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