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
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Vapor as such a stock due to the following factors:
- VPCO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.1 million.
- VPCO has traded 364,798 shares today.
- VPCO is trading at 18.95 times the normal volume for the stock at this time of day.
- VPCO is trading at a new low 3.12% 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 VPCO:
Vapor Corp. designs, markets, and distributes electronic cigarettes, vaporizers, e-liquids, and accessories primarily in the United States and Canada. Currently there is 1 analyst that rates Vapor a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Vapor has been 349,700 shares per day over the past 30 days. Vapor has a market cap of $27.2 million and is part of the consumer goods sector and tobacco industry. The stock has a beta of 1.35 and a short float of 0.8% with 0.06 days to cover. Shares are unchanged year-to-date as of the close of trading on Monday.
rates Vapor as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, poor profit margins, weak operating cash flow and feeble growth in its earnings per share.
Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Tobacco industry. The net income has significantly decreased by 1810.9% when compared to the same quarter one year ago, falling from -$0.06 million to -$1.05 million.
- The gross profit margin for VAPOR CORP/NV is currently lower than what is desirable, coming in at 25.31%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -17.28% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$0.59 million or 1693.93% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- VAPOR CORP/NV's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. 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, VAPOR CORP/NV turned its bottom line around by earning $0.03 versus -$0.10 in the prior year. For the next year, the market is expecting a contraction of 600.0% in earnings (-$0.15 versus $0.03).
- This stock's share value has moved by only 54.67% over the past year. 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.
- You can view the full Vapor Ratings Report.