Ballard Power Systems (BLDP) 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 Ballard Power Systems ( BLDP) as a weak on high relative volume 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 $3.4 million.
  • BLDP has traded 260,666 shares today.
  • BLDP is trading at 3.20 times the normal volume for the stock at this time of day.
  • BLDP is trading at a new low 5.00% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in BLDP with the Ticky from Trade-Ideas. See the FREE profile for BLDP NOW at Trade-Ideas

More details on BLDP:

Ballard Power Systems Inc. is engaged 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 2 rate it a hold.

The average volume for Ballard Power Systems has been 1.3 million shares per day over the past 30 days. Ballard Power Systems has a market cap of $336.9 million and is part of the industrial goods sector and industrial industry. Shares are up 68.3% year-to-date as of the close of trading on Thursday.

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. Among the areas we feel are negative, one of the most important has been poor profit margins.

Highlights from the ratings report include:
  • The gross profit margin for BALLARD POWER SYSTEMS INC is currently lower than what is desirable, coming in at 32.63%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -11.75% is significantly below that of the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength 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.
  • BLDP's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, BLDP has a quick ratio of 2.11, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has increased to -$2.89 million or 40.29% when compared to the same quarter last year. In addition, BALLARD POWER SYSTEMS INC has also vastly surpassed the industry average cash flow growth rate of -24.97%.
  • This stock has increased by 108.27% 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 BLDP 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.

null

More from Markets

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

3 Hot Reads From TheStreet's Top Premium Columnists

3 Hot Reads From TheStreet's Top Premium Columnists