Trade-Ideas: PDL BioPharma (PDLI) Is Today's "Dead Cat Bounce" Stock
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 or Stephanie Link.Trade-Ideas LLC identified PDL BioPharma (PDLI) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified PDL BioPharma as such a stock due to the following factors:
- PDLI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.9 million.
- PDLI has traded 99,809 shares today.
- PDLI is up 5.2% today.
- PDLI was down 11% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in PDLI with the Ticky from Trade-Ideas. See the FREE profile for PDLI NOW at Trade-IdeasMore details on PDLI: PDL BioPharma, Inc. engages in intellectual property asset management and patent portfolio and related assets investment activities. The stock currently has a dividend yield of 6.7%. PDLI has a PE ratio of 5.3. Currently there are no analysts that rate PDL BioPharma a buy, no analysts rate it a sell, and 3 rate it a hold.The average volume for PDL BioPharma has been 2.5 million shares per day over the past 30 days. PDL BioPharma has a market cap of $1.2 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.61 and a short float of 24.6% with 9.84 days to cover. Shares are up 5.5% year-to-date as of the close of trading on Tuesday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates PDL BioPharma as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, revenue growth, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.Highlights from the ratings report include:
- Compared to other companies in the Biotechnology industry and the overall market, PDL BIOPHARMA INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- PDLI's revenue growth has slightly outpaced the industry average of 11.1%. Since the same quarter one year prior, revenues rose by 14.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 35.61% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, PDLI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- PDL BIOPHARMA INC has improved earnings per share by 12.5% 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. We feel that this trend should continue. During the past fiscal year, PDL BIOPHARMA INC increased its bottom line by earning $1.47 versus $1.15 in the prior year. This year, the market expects an improvement in earnings ($1.77 versus $1.47).
- Net operating cash flow has increased to $45.83 million or 27.90% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -19.86%.
- You can view the full PDL BioPharma Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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