Axion Power International (AXPW) 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.

Trade-Ideas LLC identified Axion Power International ( AXPW) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Axion Power International as such a stock due to the following factors:

  • AXPW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.6 million.
  • AXPW has traded 8.6 million shares today.
  • AXPW is trading at 4.13 times the normal volume for the stock at this time of day.
  • AXPW is trading at a new low 4.17% 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 AXPW with the Ticky from Trade-Ideas. See the FREE profile for AXPW NOW at Trade-Ideas

More details on AXPW:

Axion Power International, Inc. designs, develops, manufactures, and sells advanced energy storage devices, components, and systems based on its patented PbC Technology. Its PbC batteries and battery components are used in various energy system storage functions.

The average volume for Axion Power International has been 11.4 million shares per day over the past 30 days. Axion Power International has a market cap of $13.6 million and is part of the industrial goods sector and industrial industry. The stock has a beta of 2.07 and a short float of 0.4% with 0.01 days to cover. Shares are down 84.6% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Axion Power International as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • 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 Electrical Equipment industry and the overall market, AXION POWER INTL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • AXPW's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 99.61%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • AXPW, with its very weak revenue results, has greatly underperformed against the industry average of 11.5%. Since the same quarter one year prior, revenues plummeted by 89.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • AXPW's debt-to-equity ratio is very low at 0.07 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, AXPW has a quick ratio of 2.40, which demonstrates the ability of the company to cover short-term liquidity needs.
  • AXION POWER INTL INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, AXION POWER INTL INC continued to lose money by earning -$3.77 versus -$4.50 in the prior year.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Global Stocks Mixed, U.S. Futures Soften as Earnings, Oil, Rates Cloud Sentiment

Global Stocks Mixed, U.S. Futures Soften as Earnings, Oil, Rates Cloud Sentiment

Deutsche Bank Plans 'Significant' Job Cuts as Q1 Profits Slump

Deutsche Bank Plans 'Significant' Job Cuts as Q1 Profits Slump

Samsung Posts Record Q1 But Adds Cautious Voice To Smartphone Demand Forecasts

Samsung Posts Record Q1 But Adds Cautious Voice To Smartphone Demand Forecasts

Boeing Is Back to Cruising Altitude; GM Gets Assist From Amazon -- ICYMI

Boeing Is Back to Cruising Altitude; GM Gets Assist From Amazon -- ICYMI

Investors Shouldn't Be Worried About Trump's Trade Tariffs: Ian Bremmer

Investors Shouldn't Be Worried About Trump's Trade Tariffs: Ian Bremmer