Volatile Stock to Watch: India Globalization Capital Inc (NYSE: IGC)

U.S. equities traded slightly higher on Wednesday as tech stocks continued to bounce back. Wall Street was also on the lookout for new details regarding a tax-code overhaul.

The Dow Jones industrial average rose 20 points, with Microsoft leading advancers on the 30-stock index. The S&P 500 gained 0.1 percent, with information technology rising half a percent. The Nasdaq composite outperformed, rising 0.2 percent as shares of Facebook rose more than 1.5 percent.

Tech stocks were on track Wednesday to post consecutive gains after being pressured over the past week.

Investors also kept an eye on Washington as they awaited new details on Congress negotiations to overhaul the U.S. tax code. The GOP-led Congress passed a bill on Saturday that increased the chances of the overhaul —which would significantly lower corporate taxed — taking place this year.

But the Senate’s bill is different than another one passed by the House. Now both chambers have to work on and pass a new bill before sending it to the White House.

“We’re still in the rumor stage since nothing is final yet,” said Nick Raich, CEO of The Earnings Scout. He noted, however, that lower corporate taxes are “somewhat priced into the earnings estimates for next year.” (Source: CNBC)

Stock in Focus: India Globalization Capital, Inc. (NYSE: IGC)

India Globalization Capital, Inc. (NYSE: IGC) has grabbed attention from the analysts when it experienced a change of 6.73% in the current trading session to trade at $0.64. A total of 741,358 shares exchanged hands during the intra-day trade contrast with its average trading volume of 406.00K shares, while its relative volume stands at 6.27. 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, India Globalization Capital, Inc. (NYSE: IGC) stock is found to be 13.33% volatile for the week, while 9.77% volatility is recorded for the month.

Technical’s Snapshot:

The stock has a market cap of $15.44M and the number of outstanding shares has been calculated 25.73M. Based on a recent bid, its distance from 20 days simple moving average is 26.17%, and its distance from 50 days simple moving average is 42.60% while it has a distance of 54.92% from the 200 days simple moving average. The company’s distance from 52-week high price is -19.95% and the current price is 220.36% away from 52-week low price. The company has Relative Strength Index (RSI 14) of 68.18 together with Average True Range (ATR 14) of 0.05.

Stock’s Valuation:

Past 5 years growth of IGC observed at 51.30%, 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 25.73 and price to book ratio for the most recent quarter is 2.73, whereas price to cash per share for the most recent quarter are 51.46. Its quick ratio for the most recent quarter is N/A. Analysts mean recommendation for the stock is N/A. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.

Disclaimer: Any news, report, research, and analysis published on Alphabetastock.com are only for information purposes. Alpha Beta Stock (ABS) makes sure to keep the information up to date and correct, but we didn’t suggest or recommend buying or selling of any financial instrument unless that information is subsequently confirmed on your own. Information in this release is fact checked and produced by competent editors of Alpha Beta Stock; however, human error can exist.

Robert Thomas

Robert Thomas has over 14 years experience in the financial services industry giving him a vast understanding of how news affects the financial markets. He is an active day trader spending the majority of her time analyzing earnings reports and watching commodities and derivatives. He has a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

Leave a Reply

Your email address will not be published. Required fields are marked *