Trade-Ideas LLC identified

Ballard Power Systems

(

BLDP

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Ballard Power Systems as such a stock due to the following factors:

  • BLDP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.0 million.
  • BLDP has traded 961,228 shares today.
  • BLDP is trading at 8.00 times the normal volume for the stock at this time of day.
  • BLDP is trading at a new high 8.20% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 BLDP:

Ballard Power Systems Inc. engages in the development and commercialization of proton exchange membrane fuel cells worldwide. The company is primarily involved in the design, development, manufacture, sale, and service of fuel cell stacks, modules, and systems for various applications. Currently there are 3 analysts that rate Ballard Power Systems a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Ballard Power Systems has been 1.1 million shares per day over the past 30 days. Ballard Power Systems has a market cap of $287.1 million and is part of the industrial goods sector and industrial industry. Shares are up 17.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Ballard Power Systems as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, poor profit margins and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • 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 Electrical Equipment industry. The net income has significantly decreased by 242.4% when compared to the same quarter one year ago, falling from $7.02 million to -$9.99 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Electrical Equipment industry and the overall market, BALLARD POWER SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to -$7.48 million or 39.10% 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 gross profit margin for BALLARD POWER SYSTEMS INC is currently lower than what is desirable, coming in at 27.70%. Regardless of BLDP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, BLDP's net profit margin of -61.29% significantly underperformed when compared to the industry average.
  • BALLARD POWER SYSTEMS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, BALLARD POWER SYSTEMS INC continued to lose money by earning -$0.05 versus -$0.21 in the prior year. For the next year, the market is expecting a contraction of 260.0% in earnings (-$0.18 versus -$0.05).

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