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

Opexa Therapeutics

(

OPXA

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

  • OPXA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.6 million.
  • OPXA has traded 2.2 million shares today.
  • OPXA is trading at 26.71 times the normal volume for the stock at this time of day.
  • OPXA is trading at a new low 6.18% 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 OPXA:

TheStreet Recommends

Opexa Therapeutics, Inc., a biopharmaceutical company, develops personalized immunotherapy to treat multiple sclerosis (MS) and other autoimmune diseases, such as neuromyelitis optica (NMO) based on its proprietary T-cell technology. Currently there is 1 analyst that rates Opexa Therapeutics a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Opexa Therapeutics has been 772,000 shares per day over the past 30 days. Opexa has a market cap of $27.7 million and is part of the health care sector and drugs industry. The stock has a beta of 2.49 and a short float of 4.4% with 0.07 days to cover. Shares are down 27.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Opexa Therapeutics as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow 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 Biotechnology industry and the overall market, OPEXA THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has declined marginally to -$3.69 million or 1.12% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • OPXA'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 70.90%, 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, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Biotechnology industry average, but is greater than that of the S&P 500. The net income increased by 10.7% when compared to the same quarter one year prior, going from -$3.76 million to -$3.36 million.
  • The revenue fell significantly faster than the industry average of 19.7%. Since the same quarter one year prior, revenues fell by 11.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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