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

  • GSI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.0 million.
  • GSI has traded 116,720 shares today.
  • GSI is trading at 118.14 times the normal volume for the stock at this time of day.
  • GSI is trading at a new low 10.30% 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 GSI:

General Steel Holdings, Inc., through its subsidiaries, manufactures and sells steel products in the People's Republic of China.

The average volume for General Steel Holdings has been 75,400 shares per day over the past 30 days. General has a market cap of $45.4 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.11 and a short float of 0.2% with 0.02 days to cover. Shares are up 130.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates General Steel Holdings as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • GENERAL STEEL HOLDINGS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, GENERAL STEEL HOLDINGS INC reported poor results of -$4.40 versus -$2.95 in the prior year.
  • 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 Metals & Mining industry. The net income has significantly decreased by 5481.5% when compared to the same quarter one year ago, falling from -$11.02 million to -$615.03 million.
  • Net operating cash flow has significantly decreased to -$206.60 million or 468.04% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 74.21%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 4800.00% compared to the year-earlier 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.
  • Despite the weak revenue results, GSI has significantly outperformed against the industry average of 45.7%. Since the same quarter one year prior, revenues fell by 10.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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