Trade-Ideas LLC identified

Ampio Pharmaceuticals

(

AMPE

) 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 221,692 shares today.
  • AMPE is trading at 2.04 times the normal volume for the stock at this time of day.
  • AMPE is trading at a new low 4.13% 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 biopharmaceutical company, focuses on developing therapies for the treatment of prevalent inflammatory conditions in the United States.

The average volume for Ampio Pharmaceuticals has been 621,200 shares per day over the past 30 days. Ampio has a market cap of $67.1 million and is part of the health care sector and drugs industry. The stock has a beta of -0.28 and a short float of 15.9% with 2.61 days to cover. Shares are down 65.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Ampio Pharmaceuticals as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The gross profit margin for AMPIO PHARMACEUTICALS INC is currently extremely low, coming in at 0.00%. AMPE has continued with the weak profit margin when compared to the same quarter of last year.
  • 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 34.85%, 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.
  • AMPIO PHARMACEUTICALS INC's earnings per share declined by 18.2% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, AMPIO PHARMACEUTICALS INC continued to lose money by earning -$0.58 versus -$0.77 in the prior year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Pharmaceuticals industry average. The net income increased by 7.1% when compared to the same quarter one year prior, going from -$7.28 million to -$6.77 million.

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