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 $5.3 million.
  • CLNE has traded 336,677 shares today.
  • CLNE is trading at 2.80 times the normal volume for the stock at this time of day.
  • CLNE is trading at a new low 4.07% 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, 2 analysts rate it a sell, and 1 rates it a hold.

The average volume for Clean Energy Fuels has been 1.3 million shares per day over the past 30 days. Clean Energy has a market cap of $431.1 million and is part of the utilities sector and utilities industry. The stock has a beta of 2.20 and a short float of 24% with 15.05 days to cover. Shares are down 1.7% year-to-date as of the close of trading on Tuesday.

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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 has underperformed the S&P 500 Index, declining 22.08% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 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 14.7% in earnings (-$1.09 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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