Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Ampio Pharmaceuticals as such a stock due to the following factors:
- AMPE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.4 million.
- AMPE has traded 100,532 shares today.
- AMPE is trading at 2.91 times the normal volume for the stock at this time of day.
- AMPE is trading at a new low 3.05% 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.
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More details on AMPE:
Ampio Pharmaceuticals, Inc., a development stage biopharmaceutical company, develops therapies for the treatment of prevalent inflammatory conditions in the United States. Currently there is 1 analyst that rates Ampio Pharmaceuticals a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Ampio Pharmaceuticals has been 573,400 shares per day over the past 30 days. Ampio has a market cap of $293.1 million and is part of the health care sector and drugs industry. The stock has a beta of 0.38 and a short float of 20.4% with 16.17 days to cover. Shares are up 72% year-to-date as of the close of trading on Thursday.
rates Ampio Pharmaceuticals as a
. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, weak operating cash flow and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- AMPIO PHARMACEUTICALS INC's earnings per share declined by 12.5% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, AMPIO PHARMACEUTICALS INC reported poor results of -$0.62 versus -$0.34 in the prior year. For the next year, the market is expecting a contraction of 24.2% in earnings (-$0.77 versus -$0.62).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Pharmaceuticals industry. The net income has significantly decreased by 52.8% when compared to the same quarter one year ago, falling from -$6.07 million to -$9.28 million.
- Looking at the price performance of AMPE's shares over the past 12 months, there is not much good news to report: the stock is down 40.37%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- Net operating cash flow has decreased to -$6.75 million or 25.14% when compared to the same quarter last year. Despite a decrease in cash flow AMPIO PHARMACEUTICALS INC is still fairing well by exceeding its industry average cash flow growth rate of -55.25%.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Pharmaceuticals industry and the overall market, AMPIO PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Ampio Pharmaceuticals Ratings Report.