Trade-Ideas LLC identified Energy Company of Parana ( ELP) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Energy Company of Parana as such a stock due to the following factors:

  • ELP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.8 million.
  • ELP has traded 56,367 shares today.
  • ELP is trading at 2.09 times the normal volume for the stock at this time of day.
  • ELP is trading at a new low 4.00% 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 ELP:

Companhia Paranaense de Energia - COPEL engages in the generation, transmission, distribution, and sale of electricity to industrial, residential, commercial, rural, and other customers primarily in the State of Parana, Brazil. The stock currently has a dividend yield of 9.6%. Currently there are 2 analysts that rate Energy Company of Parana a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Energy Company of Parana has been 609,400 shares per day over the past 30 days. Energy Company of Parana has a market cap of $2.3 billion and is part of the utilities sector and utilities industry. Shares are down 37.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Energy Company of Parana as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.51, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.16, which illustrates the ability to avoid short-term cash problems.
  • ELP, with its decline in revenue, underperformed when compared the industry average of 0.8%. Since the same quarter one year prior, revenues fell by 11.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The gross profit margin for COPEL-CIA PARANAENSE ENERGIA is currently extremely low, coming in at 11.63%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 7.12% trails that of the industry average.
  • Net operating cash flow has decreased to $114.40 million or 48.04% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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