JA Solar Holdings Co ADR (JASO) Is Strong 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.

Trade-Ideas LLC identified JA Solar Holdings Co ADR ( JASO) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified JA Solar Holdings Co ADR as such a stock due to the following factors:

  • JASO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.6 million.
  • JASO has traded 275,328 shares today.
  • JASO is trading at 2.68 times the normal volume for the stock at this time of day.
  • JASO is trading at a new high 3.09% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 JASO:

JA Solar Holdings Co., Ltd., together with its subsidiaries, designs, develops, manufactures, and sells photovoltaic solar cells and solar power products based on crystalline silicon technologies. JASO has a PE ratio of 54.3. Currently there are 4 analysts that rate JA Solar Holdings Co ADR a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for JA Solar Holdings Co ADR has been 1.6 million shares per day over the past 30 days. JA Solar Holdings Co ADR has a market cap of $493.5 million and is part of the technology sector and electronics industry. Shares are up 19.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates JA Solar Holdings Co ADR as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including poor profit margins and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • JASO's very impressive revenue growth greatly exceeded the industry average of 0.5%. Since the same quarter one year prior, revenues leaped by 53.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.78, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.83 is somewhat weak and could be cause for future problems.
  • JA SOLAR HOLDINGS CO LTD's earnings per share declined by 21.6% 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, JA SOLAR HOLDINGS CO LTD turned its bottom line around by earning $1.20 versus -$2.05 in the prior year. For the next year, the market is expecting a contraction of 3.8% in earnings ($1.16 versus $1.20).
  • The gross profit margin for JA SOLAR HOLDINGS CO LTD is rather low; currently it is at 15.48%. Regardless of JASO's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, JASO's net profit margin of 4.29% is significantly lower than the industry average.

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