Strong On High Volume: Maxwell Technologies (MXWL)

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 Maxwell Technologies ( MXWL) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Maxwell Technologies as such a stock due to the following factors:

  • MXWL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.0 million.
  • MXWL has traded 115,601 shares today.
  • MXWL is trading at 2.22 times the normal volume for the stock at this time of day.
  • MXWL is trading at a new high 3.00% 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 MXWL:

Maxwell Technologies, Inc., together with its subsidiaries, develops, manufactures, and markets energy storage and power delivery products worldwide. Currently there are 2 analysts that rate Maxwell Technologies a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Maxwell Technologies has been 402,000 shares per day over the past 30 days. Maxwell has a market cap of $152.1 million and is part of the technology sector and electronics industry. The stock has a beta of 0.97 and a short float of 23.5% with 10.33 days to cover. Shares are down 41.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Maxwell Technologies as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • MAXWELL TECHNOLOGIES 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, MAXWELL TECHNOLOGIES INC swung to a loss, reporting -$0.21 versus $0.22 in the prior year. For the next year, the market is expecting a contraction of 185.7% in earnings (-$0.60 versus -$0.21).
  • 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 3028.2% when compared to the same quarter one year ago, falling from $0.32 million to -$9.34 million.
  • 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 Electronic Equipment, Instruments & Components industry and the overall market, MAXWELL TECHNOLOGIES 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 -$0.78 million or 401.16% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 69.34%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 3300.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

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