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 Highpower International as such a stock due to the following factors:
- HPJ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.2 million.
- HPJ has traded 541,178 shares today.
- HPJ is trading at 13.70 times the normal volume for the stock at this time of day.
- HPJ is trading at a new low 3.24% 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 HPJ:
Highpower International, Inc. manufactures and trades nickel metal hydride rechargeable batteries for portable electronic devices. HPJ has a PE ratio of 52.4.
The average volume for Highpower International has been 436,900 shares per day over the past 30 days. Highpower International has a market cap of $110.5 million and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.78 and a short float of 3.1% with 0.27 days to cover. Shares are up 201.2% year-to-date as of the close of trading on Thursday.
rates Highpower International as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and poor profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 6.5%. Since the same quarter one year prior, revenues rose by 22.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electrical Equipment industry. The net income increased by 645.0% when compared to the same quarter one year prior, rising from $0.11 million to $0.81 million.
- HIGHPOWER INTERNATIONAL INC reported significant earnings per share improvement 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, HIGHPOWER INTERNATIONAL INC reported lower earnings of $0.11 versus $0.13 in the prior year. This year, the market expects an improvement in earnings ($0.21 versus $0.11).
- Net operating cash flow has declined marginally to -$4.49 million or 3.67% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, HIGHPOWER INTERNATIONAL INC has marginally lower results.
- Currently the debt-to-equity ratio of 1.55 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. To add to this, HPJ has a quick ratio of 0.63, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- You can view the full Highpower International Ratings Report.