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 or Stephanie Link.

Trade-Ideas LLC identified

Globalstar

(

GSAT

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

  • GSAT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.2 million.
  • GSAT has traded 1.2 million shares today.
  • GSAT is trading at 2.21 times the normal volume for the stock at this time of day.
  • GSAT is trading at a new low 8.14% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in GSAT with the Ticky from Trade-Ideas. See the FREE profile for GSAT NOW at Trade-Ideas

More details on GSAT:

Globalstar, Inc. provides mobile voice and data communications services through satellite worldwide.

The average volume for Globalstar has been 7.0 million shares per day over the past 30 days. Globalstar has a market cap of $2.5 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 4.29 and a short float of 15.8% with 14.45 days to cover. Shares are up 72% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Globalstar as a

sell

. The area that we feel has been the company's primary weakness has been its feeble growth in its earnings per share.

Highlights from the ratings report include:

  • GLOBALSTAR INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GLOBALSTAR INC reported poor results of -$0.96 versus -$0.29 in the prior year. This year, the market expects an improvement in earnings (-$0.62 versus -$0.96).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Diversified Telecommunication Services industry. The net income increased by 163.1% when compared to the same quarter one year prior, rising from -$204.97 million to $129.39 million.
  • 48.39% is the gross profit margin for GLOBALSTAR INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 551.98% significantly outperformed against the industry average.
  • Net operating cash flow has slightly increased to $4.52 million or 8.70% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -20.49%.
  • This stock has increased by 60.54% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in GSAT do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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