Trade-Ideas LLC identified

Clean Energy Fuels

(

CLNE

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

  • CLNE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.1 million.
  • CLNE has traded 234,570 shares today.
  • CLNE is trading at 3.11 times the normal volume for the stock at this time of day.
  • CLNE is trading at a new low 6.08% 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 CLNE:

Clean Energy Fuels Corp. provides natural gas as an alternative fuel for vehicle fleets in the United States and Canada. Currently there are 2 analysts that rate Clean Energy Fuels a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Clean Energy Fuels has been 1.6 million shares per day over the past 30 days. Clean Energy has a market cap of $224.6 million and is part of the utilities sector and utilities industry. The stock has a beta of 2.64 and a short float of 20.7% with 9.86 days to cover. Shares are down 20.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Clean Energy Fuels as a

sell

. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • The gross profit margin for CLEAN ENERGY FUELS CORP is currently lower than what is desirable, coming in at 27.68%. Regardless of CLNE's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, CLNE's net profit margin of -25.05% significantly underperformed when compared to the industry average.
  • CLNE'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 53.53%, 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.
  • Currently the debt-to-equity ratio of 1.66 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Even though the debt-to-equity ratio is weak, CLNE's quick ratio is somewhat strong at 1.11, demonstrating the ability to handle short-term liquidity needs.
  • CLEAN ENERGY FUELS CORP has improved earnings per share by 21.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, CLEAN ENERGY FUELS CORP reported poor results of -$0.95 versus -$0.71 in the prior year. For the next year, the market is expecting a contraction of 15.8% in earnings (-$1.10 versus -$0.95).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CLEAN ENERGY FUELS CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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