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

  • FORD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.6 million.
  • FORD has traded 668,834 shares today.
  • FORD is trading at 35.56 times the normal volume for the stock at this time of day.
  • FORD is trading at a new low 13.25% 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 FORD:

Forward Industries, Inc., together with its subsidiaries, designs, markets, and distributes carry and protective solutions primarily for hand held electronic devices. FORD has a PE ratio of 9.

The average volume for Forward Industries has been 774,600 shares per day over the past 30 days. Forward has a market cap of $15.6 million and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of -0.07 and a short float of 8.2% with 0.11 days to cover. Shares are up 125% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Forward Industries as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • 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 Textiles, Apparel & Luxury Goods industry. The net income has significantly decreased by 127.5% when compared to the same quarter one year ago, falling from -$0.30 million to -$0.69 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 Textiles, Apparel & Luxury Goods industry and the overall market, FORWARD INDUSTRIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for FORWARD INDUSTRIES INC is rather low; currently it is at 18.82%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -9.47% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$0.98 million or 228.53% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The share price of FORWARD INDUSTRIES INC has not done very well: it is down 17.19% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

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