Trade-Ideas LLC identified

Ocean Power Technologies

(

OPTT

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

  • OPTT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.6 million.
  • OPTT has traded 962,093 shares today.
  • OPTT is trading at 57.59 times the normal volume for the stock at this time of day.
  • OPTT is trading at a new high 14.16% 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 OPTT:

Ocean Power Technologies, Inc. develops and commercializes proprietary systems that generate electricity by harnessing the renewable energy of ocean waves primarily in the United States, Europe, Asia, and Australia.

The average volume for Ocean Power Technologies has been 583,600 shares per day over the past 30 days. Ocean has a market cap of $5.7 million and is part of the industrial goods sector and industrial industry. The stock has a beta of 2.75 and a short float of 6% with 0.16 days to cover. Shares are up 125.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Ocean Power Technologies as a

sell

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

Highlights from the ratings report include:

  • 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 Electrical Equipment industry and the overall market, OCEAN POWER TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • OPTT's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 45.51%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.
  • OPTT, with its very weak revenue results, has greatly underperformed against the industry average of 12.0%. Since the same quarter one year prior, revenues plummeted by 98.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Net operating cash flow has significantly increased by 58.68% to -$1.09 million when compared to the same quarter last year. Despite an increase in cash flow, OCEAN POWER TECHNOLOGIES INC's cash flow growth rate is still lower than the industry average growth rate of 80.91%.
  • OCEAN POWER TECHNOLOGIES INC has improved earnings per share by 12.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, OCEAN POWER TECHNOLOGIES INC continued to lose money by earning -$7.50 versus -$9.40 in the prior year.

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