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.

Trade-Ideas LLC identified

Ampio Pharmaceuticals

(

AMPE

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

  • AMPE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.0 million.
  • AMPE has traded 268,964 shares today.
  • AMPE is trading at 2.06 times the normal volume for the stock at this time of day.
  • AMPE is trading at a new low 4.15% 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 AMPE:

Ampio Pharmaceuticals, Inc., a biopharmaceutical company, focuses on developing therapies for the treatment of prevalent inflammatory conditions in the United States.

The average volume for Ampio Pharmaceuticals has been 1.2 million shares per day over the past 30 days. Ampio has a market cap of $150.2 million and is part of the health care sector and drugs industry. The stock has a beta of 0.38 and a short float of 19.3% with 3.32 days to cover. Shares are down 15.7% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Ampio Pharmaceuticals as a

sell

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

Highlights from the ratings report include:

  • AMPIO PHARMACEUTICALS INC's earnings per share declined by 5.5% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, AMPIO PHARMACEUTICALS INC reported poor results of -$0.77 versus -$0.62 in the prior year.
  • The change in net income from the same quarter one year ago has exceeded that of the Pharmaceuticals industry average, but is less than that of the S&P 500. The net income has significantly decreased by 35.0% when compared to the same quarter one year ago, falling from -$7.34 million to -$9.91 million.
  • Net operating cash flow has decreased to -$5.78 million or 15.38% when compared to the same quarter last year. Despite a decrease in cash flow AMPIO PHARMACEUTICALS INC is still fairing well by exceeding its industry average cash flow growth rate of -32.92%.
  • 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 Pharmaceuticals industry and the overall market, AMPIO PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Compared to its closing price of one year ago, AMPE's share price has jumped by 44.38%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in AMPE do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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