Today's Perilous Reversal Stock: Ballard Power Systems (BLDP)

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

  • BLDP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.1 million.
  • BLDP has traded 298,197 shares today.
  • BLDP is down 3.9% today.
  • BLDP was up 14.3% yesterday.

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More details on BLDP:

Ballard Power Systems Inc. engages in the development and commercialization of proton exchange membrane fuel cells worldwide. Currently there is 1 analyst that rates Ballard Power Systems a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Ballard Power Systems has been 3.1 million shares per day over the past 30 days. Ballard Power Systems has a market cap of $308.3 million and is part of the industrial goods sector and industrial industry. Shares are up 86.1% year-to-date as of the close of trading on Tuesday.

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 Ballard Power Systems as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and weak operating cash flow.

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, BALLARD POWER SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$4.84 million or 276.80% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • BALLARD POWER SYSTEMS INC reported significant earnings per share improvement 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, BALLARD POWER SYSTEMS INC reported poor results of -$0.47 versus -$0.39 in the prior year.
  • 36.56% is the gross profit margin for BALLARD POWER SYSTEMS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -26.51% is in-line with the industry average.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electrical Equipment industry. The net income increased by 49.6% when compared to the same quarter one year prior, rising from -$8.95 million to -$4.51 million.

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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