Trade-Ideas LLC identified

Apollo Investment

(

AINV

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

  • AINV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.1 million.
  • AINV has traded 320,889 shares today.
  • AINV is trading at 3.92 times the normal volume for the stock at this time of day.
  • AINV is trading at a new low 6.15% 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 AINV:

Apollo Investment Corporation is business development company and operates as a closed-end management investment company. The company invests in middle market companies. It provides direct equity capital, mezzanine and senior secured loans, and subordinated debt and loans. The stock currently has a dividend yield of 15.9%. Currently there are 5 analysts that rate Apollo Investment a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Apollo Investment has been 1.9 million shares per day over the past 30 days. Apollo Investment has a market cap of $1.2 billion and is part of the financial sector and financial services industry. Shares are down 3.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Apollo Investment as a

hold

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • Net operating cash flow has significantly increased by 145.34% to $83.12 million when compared to the same quarter last year. In addition, APOLLO INVESTMENT CORP has also vastly surpassed the industry average cash flow growth rate of -94.16%.
  • The gross profit margin for APOLLO INVESTMENT CORP is currently very high, coming in at 72.47%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -1.77% is in-line with the industry average.
  • AINV, with its decline in revenue, underperformed when compared the industry average of 4.0%. Since the same quarter one year prior, revenues fell by 17.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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 Capital Markets industry. The net income has significantly decreased by 104.2% when compared to the same quarter one year ago, falling from $41.97 million to -$1.75 million.
  • 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 Capital Markets industry and the overall market on the basis of return on equity, APOLLO INVESTMENT CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.

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