Trade-Ideas LLC identified

Ocean Power Technologies

(

OPTT

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Ocean Power Technologies as such a stock due to the following factors:

  • OPTT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $28.6 million.
  • OPTT has traded 50,279 shares today.
  • OPTT is down 6.2% today.
  • OPTT was up 21.6% yesterday.

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More details on OPTT:

Ocean Power Technologies, Inc. develops and commercializes proprietary systems that generate electricity by harnessing the renewable energy of ocean waves primarily in North America, Europe, Asia, and Australia.

The average volume for Ocean Power Technologies has been 2.2 million shares per day over the past 30 days. Ocean has a market cap of $23.6 million and is part of the industrial goods sector and industrial industry. The stock has a beta of 4.90 and a short float of 10.5% with 0.08 days to cover. Shares are up 337.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Ocean Power Technologies 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 deteriorating net income.

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 Electrical Equipment industry and the overall market, OCEAN POWER TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to -$2.85 million or 17.83% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The change in net income from the same quarter one year ago has exceeded that of the Electrical Equipment industry average, but is less than that of the S&P 500. The net income has decreased by 21.5% when compared to the same quarter one year ago, dropping from -$3.28 million to -$3.98 million.
  • OPTT, with its very weak revenue results, has greatly underperformed against the industry average of 10.5%. Since the same quarter one year prior, revenues plummeted by 79.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • OCEAN POWER TECHNOLOGIES INC's earnings per share declined by 9.5% 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, OCEAN POWER TECHNOLOGIES INC continued to lose money by earning -$7.24 versus -$7.50 in the prior year.

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