Vuzix Corporation (VUZI) Weak On High Volume Today

Trade-Ideas LLC identified Vuzix Corporation (VUZI) as a weak on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Vuzix Corporation

(

VUZI

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Vuzix Corporation as such a stock due to the following factors:

  • VUZI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.2 million.
  • VUZI has traded 537,708 shares today.
  • VUZI is trading at 24.51 times the normal volume for the stock at this time of day.
  • VUZI is trading at a new low 3.01% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in VUZI with the Ticky from Trade-Ideas. See the FREE profile for VUZI NOW at Trade-Ideas

More details on VUZI:

Vuzix Corporation designs, manufactures, markets, and sells wearable display devices in the United States and internationally. Currently there are 2 analysts that rate Vuzix Corporation a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Vuzix Corporation has been 303,400 shares per day over the past 30 days. Vuzix has a market cap of $117.0 million and is part of the consumer goods sector and consumer durables industry. The stock has a beta of -0.10 and a short float of 13.7% with 1.99 days to cover. Shares are up 5% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Vuzix Corporation as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Household Durables industry and the overall market, VUZIX CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to -$3.21 million or 16.92% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Household Durables industry average, but is greater than that of the S&P 500. The net income increased by 25.8% when compared to the same quarter one year prior, rising from -$5.09 million to -$3.78 million.
  • VUZI, with its very weak revenue results, has greatly underperformed against the industry average of 3.7%. Since the same quarter one year prior, revenues plummeted by 55.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • VUZIX CORP has improved earnings per share by 35.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, VUZIX CORP reported poor results of -$0.98 versus -$0.76 in the prior year. This year, the market expects an improvement in earnings (-$0.82 versus -$0.98).

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

Loading ...