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China Telecom Corporation Limited Among the NYSE's Biggest Movers on August 22, 2012

August 22, 2012 | Filed Under »
Tickers in this Article » SRZ, QIHU, WSM, BKD, CHA, BTH, MTH
This morning, the Nasdaq has moved little, the S&P 500 is trading down 0.3% and the Dow has decreased 0.4%. Today, more than half of all NYSE trades are conducted electronically, although floor traders are still used to set pricing and deal in high volume institutional trading.

The biggest movers traded on the NYSE so far are:
CompanyMarket CapPercentage Change
Sunrise Senior Living (NYSE:SRZ)$520.2 million+59.7%
QIHOO 360 (NYSE:QIHU)$2.44 billion+11.1%
Williams-Sonoma (NYSE:WSM)$3.79 billion+10.9%
Brookdale Senior Living (NYSE:BKD)$2.44 billion+8.4%
China Telecom Corporation Limited (NYSE:CHA)$41.73 billion+6.4%
Blyth (NYSE:BTH)$746.9 million-5.4%
Meritage (NYSE:MTH)$1.29 billion+4.8%
Broker Summary: Charles Schwab Online Brokerage

Sunrise Senior Living (NYSE:SRZ) is currently at $14.26 per share after a dramatic increase of 59.7%. So far today, the company's volume is 66.4 million shares, 163 times its average over the past three months. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. A simple P/E ratio can reveal the stock's real market value and show how the valuation compares to its industry group or a benchmark like the S&P 500 Index. SRZ has a P/E ratio of 117.7, high compared to the industry average of 18.97. Generally speaking, the higher the P/E ratio, the higher the market expectations for a company's future performance. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: Can Investors Trust the P/E Ratio?





QIHOO 360 (NYSE:QIHU) rose a significant 11.1% to reach $23.43 per share. This morning, the company is trading a volume of 7.7 million shares. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. A company's investment value can be estimated using valuation ratios such as the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. The price/book value ratio is especially important for value investors as it can provide an indication of the true value of a company's assets at a time when its business model may be failing. QIHU's P/B ratio of 7.04 shows that its share price is higher than its book value. This may be a sign that the company is overvalued. One problem with the P/B value ratio is that it can be difficult to calculate the true book value of a company, so investors should be aware that many measures of book value may provide only a rough estimate, and should be taken with a grain of salt. SEE: Using The Price-To-Book Ratio To Evaluate Companies





After a big jump of 10.9%, Williams-Sonoma (NYSE:WSM) is trading at $42.38 per share. So far today, 4.9 million shares have changed hands, whereas yesterday, volume was only 3.4 million shares. A stock's volume conveys how excited investors are about it. Valuation ratios allow the investor to make a quick determination as to a company's investment value. For investors primarily interested in the income a stock can generate, the dividend yield is an important determinant of how attractive a stock is. Dividend yield for WSM is 2.3%. Simply comparing the level of dividends that two stocks pay does not give a true reflection of which security is more attractive, so investors calculate the dividend yield in order to standardize dividend payments. SEE: Dividend Yield For The Downturn





After an increase of 8.4%, Brookdale Senior Living (NYSE:BKD) has reached a current price of $21.59. The company's volume for the morning is 3.8 million shares. This is 2.9 times its current daily average. Volume indicates the level of interest that investors have in a company at its current price. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. In a nutshell, the price/sales ratio shows how much Wall Street values every dollar of the company's sales. BKD has a low P/S ratio of 0.84. Low P/S ratios can indicate unrecognized value potential - so long as other criteria like high profit margins, low debt levels and growth prospects are in place. It is important to keep in mind when looking at the P/S ratio that just because a company is generating revenues, this does not mean that the company is profitable, and in the long run, profits drive stock prices.



Rising 6.4%, China Telecom Corporation Limited (NYSE:CHA) is currently trading at $54.87 per share. The company's volume for the day so far is 592,623 shares, 10 times the current three-month average. If a stock price makes a big move up or down, volume lets us know the significance of that move. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. The debt ratio measures the leverage of a company, and a company's leverage is a good way to assess risk. The debt ratio for CHA is 100%, which is relatively high. This means that the company's cash flow is significantly impacted by paying off principal and interest and that any negative change in performance or rise in interest rates could result in default. However, one thing to note with this ratio: it isn't a pure measure of a company's debt (or indebtedness), as it also includes operational liabilities, such as accounts payable and taxes payable.



Blyth (NYSE:BTH) is trading at $40.97 per share, down 5.4%. So far today, the company's volume is 181,944 shares. If a stock is trading on low volume, then there is not much interest in the stock. On the other hand, if a stock is trading on high volume, then there is a lot of interest in the stock. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. A company's capitalization (not to be confused with its market capitalization) is the term used to describe the makeup of a company's permanent or long-term capital, which consists of both long-term debt and shareholders' equity. The capitalization ratio for BTH is 45.6%. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.



Meritage (NYSE:MTH) has risen 4.8% and is currently trading at $38.27 per share. At 261,631 shares, the company's volume so far today is. In technical analysis, trading volume is used to determine the strength of a market indicator. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. The debt-equity (D/E) ratio is a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. MTH has a D/E ratio of 120%, which is relatively high. This shows that the company's assets are financed primarily through debt. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.



The Bottom Line The nature of the market is such that stocks will have good days and bad days. It is important to weigh current activity against historical performance when making any investment decisions. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.

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