China Ming Yang Wind Power Group (MY) Weak On High Volume Today

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 China Ming Yang Wind Power Group ( MY) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified China Ming Yang Wind Power Group as such a stock due to the following factors:

  • MY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.5 million.
  • MY has traded 298,232 shares today.
  • MY is trading at 2.24 times the normal volume for the stock at this time of day.
  • MY is trading at a new low 5.11% 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 MY:

China Ming Yang Wind Power Group Limited designs, manufactures, sells, and services megawatt-class wind turbines in the People's Republic of China and the Republic of India. The company provides wind turbines with a rated power capacity of 1.5MW and 2.0MW; and 2.5/3.0MW SCD wind turbines.

The average volume for China Ming Yang Wind Power Group has been 1.3 million shares per day over the past 30 days. China Ming Yang Wind Power Group has a market cap of $376.1 million and is part of the industrial goods sector and industrial industry. Shares are up 27.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates China Ming Yang Wind Power Group as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Electrical Equipment industry and the overall market, CHINA MING YANG WIND PWR-ADR's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CHINA MING YANG WIND PWR-ADR is currently extremely low, coming in at 13.20%. Regardless of MY's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.43% trails the industry average.
  • CHINA MING YANG WIND PWR-ADR 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, CHINA MING YANG WIND PWR-ADR reported poor results of -$0.68 versus -$0.37 in the prior year.
  • Despite currently having a low debt-to-equity ratio of 0.57, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.80 is weak.
  • This stock has increased by 79.53% 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 MY do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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