Trade-Ideas LLC identified

Dataram

(

DRAM

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

  • DRAM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.6 million.
  • DRAM has traded 556,221 shares today.
  • DRAM is trading at 167.91 times the normal volume for the stock at this time of day.
  • DRAM is trading at a new high 10.50% 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 DRAM:

Dataram Corporation develops, manufactures, and markets memory products primarily used in enterprise servers and workstations worldwide.

The average volume for Dataram has been 113,900 shares per day over the past 30 days. Dataram has a market cap of $2.3 million and is part of the technology sector and computer hardware industry. The stock has a beta of 0.21 and a short float of 0.4% with 0.03 days to cover. Shares are down 29.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Dataram as a

sell

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

Highlights from the ratings report include:

  • The gross profit margin for DATARAM CORP is rather low; currently it is at 20.22%. Regardless of DRAM's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, DRAM's net profit margin of -6.81% significantly underperformed when compared to the industry average.
  • DRAM'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 74.10%, 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.
  • 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 Computers & Peripherals industry and the overall market, DATARAM CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • DATARAM CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, DATARAM CORP reported poor results of -$6.66 versus -$3.96 in the prior year.
  • DRAM, with its decline in revenue, slightly underperformed the industry average of 12.7%. Since the same quarter one year prior, revenues fell by 18.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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