Weak On High Volume: Ascent Solar Technologies (ASTI)

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

  • ASTI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.5 million.
  • ASTI has traded 776,616 shares today.
  • ASTI is trading at 2.04 times the normal volume for the stock at this time of day.
  • ASTI is trading at a new low 10.55% 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 ASTI:

Ascent Solar Technologies, Inc., a development stage company, designs and manufactures photovoltaic integrated consumer electronics; and portable power applications for commercial and military users.

The average volume for Ascent Solar Technologies has been 3.0 million shares per day over the past 30 days. Ascent Solar has a market cap of $16.0 million and is part of the technology sector and electronics industry. The stock has a beta of 5.86 and a short float of 6.4% with 0.14 days to cover. Shares are down 74.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Ascent Solar Technologies as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, deteriorating net income and weak operating cash flow.

Highlights from the ratings report include:
  • ASTI'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 90.04%, 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.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Semiconductors & Semiconductor Equipment industry average. The net income has decreased by 8.8% when compared to the same quarter one year ago, dropping from -$10.42 million to -$11.34 million.
  • Net operating cash flow has decreased to -$7.02 million or 13.99% when compared to the same quarter last year. Despite a decrease in cash flow of 13.99%, ASCENT SOLAR TECHNOLOGIES is in line with the industry average cash flow growth rate of -22.95%.
  • ASCENT SOLAR TECHNOLOGIES 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, ASCENT SOLAR TECHNOLOGIES continued to lose money by earning -$5.91 versus -$6.70 in the prior year.
  • ASTI's very impressive revenue growth greatly exceeded the industry average of 11.5%. Since the same quarter one year prior, revenues leaped by 105.0%. Growth in the company's revenue appears to have helped boost the earnings per share.

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