Trade-Ideas LLC identified

Plug Power

(

PLUG

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

  • PLUG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.1 million.
  • PLUG has traded 471,418 shares today.
  • PLUG is trading at 3.54 times the normal volume for the stock at this time of day.
  • PLUG is trading at a new high 5.21% 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 PLUG:

Plug Power Inc., an alternative energy technology provider, engages in the design, development, manufacture, and commercialization of fuel cell systems for the industrial off-road markets worldwide. Currently there are 3 analysts that rate Plug Power a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Plug Power has been 2.0 million shares per day over the past 30 days. Plug has a market cap of $334.8 million and is part of the technology sector and electronics industry. The stock has a beta of 2.77 and a short float of 20% with 22.08 days to cover. Shares are down 9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Plug Power as a

sell

. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • The gross profit margin for PLUG POWER INC is currently extremely low, coming in at 2.23%. Regardless of PLUG's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, PLUG's net profit margin of -32.49% significantly underperformed when compared to the industry average.
  • Net operating cash flow has decreased to -$13.04 million or 17.57% when compared to the same quarter last year. Despite a decrease in cash flow PLUG POWER INC is still fairing well by exceeding its industry average cash flow growth rate of -42.76%.
  • PLUG'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 41.70%, which is also worse than the performance of the S&P 500 Index. 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.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Electrical Equipment industry average. The net income has decreased by 9.2% when compared to the same quarter one year ago, dropping from -$9.35 million to -$10.21 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electrical Equipment industry and the overall market, PLUG POWER INC's return on equity significantly trails that of both the industry average and the S&P 500.

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