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 weak 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 $8.1 million.
  • JASO has traded 226,790 shares today.
  • JASO is trading at 2.15 times the normal volume for the stock at this time of day.
  • JASO is trading at a new low 3.06% 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 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 44. Currently there is 1 analyst that rates JA Solar Holdings Co ADR a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for JA Solar Holdings Co ADR has been 1.5 million shares per day over the past 30 days. JA Solar Holdings Co ADR has a market cap of $395.6 million and is part of the technology sector and electronics industry. Shares are down 4.1% year-to-date as of the close of trading on Tuesday.

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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 revenue growth, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 10.6%. Since the same quarter one year prior, revenues slightly increased by 5.9%. 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 0.79, 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 0.88 is somewhat weak and could be cause for future problems.
  • The gross profit margin for JA SOLAR HOLDINGS CO LTD is rather low; currently it is at 16.09%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.47% significantly trails the industry average.
  • 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 Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 56.9% when compared to the same quarter one year ago, falling from $13.29 million to $5.73 million.

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