Hot Stock of the Day: Net Element Inc (NASDAQ: NETE)

Technology companies are once again leading U.S. stocks higher early Wednesday as indexes remain at all-time highs. Chipmakers and well-known companies like Oracle are leading the way. South Carolina energy company Scana, which has plunged after it stopped construction of a $9 billion nuclear project, is jumping after it agreed to be bought by Dominion Energy for $7.9 billion in stock.

KEEPING SCORE: The Standard & Poor’s 500 index rose 8 points, or 0.3 percent, to 2,704 as of 10 a.m. Eastern time. The Dow Jones industrial average added 52 points, or 0.2 percent, to 24,876. The Nasdaq composite climbed 38 points, or 0.6 percent, to 7,045. The Russell 2000 index of smaller-company stocks picked up 3 points, or 0.2 percent, to 1,553. The S&P 500, Nasdaq and Russell all closed at all-time highs Tuesday.

ENERGY SURGE: Dominion Energy agreed to buy Scana in a deal that expands the Richmond, Virginia-based company’s business in the Carolinas. Dominion Energy is valuing the deal at about $7.9 billion plus $6.7 billion in debt. Scana soared $8.67, or 22.3 percent, to $47.54 and Dominion dropped $3.38, or 4.2 percent, to $76.90.

Scana traded above $70 a share in June but plunged after Scana and partner Santee Cooper said they were abandoning construction of two new nuclear reactors. They blamed the project failure on the bankruptcy of contractor Westinghouse. Scana repeatedly raised rates after the failure was declared and customers of its South Carolina Electric & Gas unit have paid about $2 billion toward the company’s debt on the project. The heads of both companies stepped down after the companies came under harsh criticism and multiple government investigations.

As part of the deal, SCANA customers will get a $1.3 billion cash payment and a modest rate reduction. (Source: ABC News)

Stock in Focus: Net Element, Inc. (NASDAQ: NETE)

Net Element, Inc. (NASDAQ: NETE) has grabbed attention from the analysts when it experienced a change of -9.11% in the current trading session to trade at $12.57. A total of 354,489 shares exchanged hands during the intra-day trade contrast with its average trading volume of 1.18M shares, while its relative volume stands at 2.64. Relative volume is the comparison of current volume to average volume for the same time of day, and it’s displayed as a ratio. If RVOL is less than 1 it is not In Play on this trading day and Investors may decide not to trade it.  If RVOL is above 2 it is In Play and this is more evidence Investors ought to be in the name.  When stocks are *very* In Play one can see a RVOL of 5 and above.  The higher the RVOL the more In Play the stock is.

Day traders strive to make money by exploiting minute price movements in individual assets (usually stocks, though currencies, futures, and options are traded as well), usually leveraging large amounts of capital to do so, therefore they trade on Stocks in Play. In Play Stocks are volatile enough to produce good risk and reward trading opportunities for both bull and bear traders intraday. Most company stocks have very little volatility. They generally move extremely slowly and they only produce big price swings when the company produces good or bad trading results, which may only happen a couple of times a year at best.

In deciding what to focus on – in a stock, say – a typical day trader looks for three things: liquidity, volatility and trading volume. Liquidity allows an investor to enter and exit a stock at a good price (i.e. tight spreads, or the difference between the bid and ask price of a stock, and low slippage, or the difference between the predictable price of a trade and the actual price). If a stock does not have good liquidity then it may take some time before a broker is able to negotiate a deal to buy or sell a stock and the broker may not be able to get the sell or buy price that the trader is looking for. This is a problem for day traders and it could mean the difference between a profitable and non-profitable trade.

Traders have different rules for what constitutes liquidity and a good guide is the volume of trades and volume of shares that are traded each day. 100,000 shares traded per day would be a minimum for most traders and some require 1,000,000.

Trading volume is a gauge of how many times a stock is bought and sold in a given time period (most commonly, within a day of trading, known as the average daily trading volume – ADTV). A high degree of volume indicates a lot of interest in a stock. Often, a boost in the volume of a stock is a harbinger of a price jump, either up or down.

Volatility is simply a measure of the predictable daily price range—the range in which a day trader operates. More volatility means greater profit or loss. After a recent check, Net Element, Inc. (NASDAQ: NETE) stock is found to be 20.12% volatile for the week, while 26.15% volatility is recorded for the month.

Technical’s Snapshot:

The stock has a market cap of $35.54M and the number of outstanding shares has been calculated 2.57M. Based on a recent bid, its distance from 20 days simple moving average is 47.95%, and its distance from 50 days simple moving average is 106.54% while it has a distance of 100.93% from the 200 days simple moving average. The company’s distance from 52-week high price is -62.49% and the current price is 391.78% away from 52-week low price. The company has Relative Strength Index (RSI 14) of 59.69 together with Average True Range (ATR 14) of 3.21.

Stock’s Valuation:

Past 5 years growth of NETE observed at 40.40%, and for the next five years the analysts that follow this company is expecting its growth at N/A. The stock’s price to sales ratio for trailing twelve months is 0.59 and price to book ratio for the most recent quarter is 13.05, whereas price to cash per share for the most recent quarter are 39.49. Its quick ratio for the most recent quarter is 0.60. Analysts mean recommendation for the stock is 2.00. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.

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Jason P. Vasser gives us an insight into the most recent news hitting the Technology Sector in Wall Street. He has been an independent financial adviser for over 10 years in the city and in recent years turned his experience in finance and passion for journalism into a full time role. He performs analysis of Companies and publicizes valuable information for shareholder community.

Jason is an accomplished journalist who has a passion for travel. His desire to see the world has taken him to countries around the world and given him the opportunity to report for some of the top news organizations.