Vicon Industries (VII) Is 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 Vicon Industries ( VII) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Vicon Industries as such a stock due to the following factors:

  • VII has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.1 million.
  • VII has traded 67,819 shares today.
  • VII is trading at 30.90 times the normal volume for the stock at this time of day.
  • VII is trading at a new low 9.51% 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 VII:

Vicon Industries, Inc. designs, assembles, and markets video management systems and system components for use in security, surveillance, safety, and communication applications in the United States and internationally.

The average volume for Vicon Industries has been 150,400 shares per day over the past 30 days. Vicon has a market cap of $16.6 million and is part of the technology sector and computer software & services industry. Shares are up 19.5% year-to-date as of the close of trading on Friday.

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 Vicon Industries as a sell. Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time.

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 Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 90.3% when compared to the same quarter one year ago, falling from -$0.72 million to -$1.37 million.
  • VII, with its decline in revenue, underperformed when compared the industry average of 3.5%. Since the same quarter one year prior, revenues slightly dropped by 7.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 36.24% is the gross profit margin for VICON INDUSTRIES INC which we consider to be strong. Regardless of VII's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, VII's net profit margin of -14.80% significantly underperformed when compared to the industry average.
  • VICON INDUSTRIES INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, VICON INDUSTRIES INC turned its bottom line around by earning $0.00 versus -$0.30 in the prior year.
  • Compared to its closing price of one year ago, VII's share price has jumped by 57.58%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in VII do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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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