Medivation (MDVN) Showing Signs Of Being Water-Logged And Getting Wetter
Trade-Ideas LLC identified
(
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Medivation as such a stock due to the following factors:
- MDVN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $65.9 million.
- MDVN has traded 122,807 shares today.
- MDVN traded in a range 207.9% of the normal price range with a price range of $4.49.
- MDVN traded below its daily resistance level (quality: 27 days, meaning that the stock is crossing a resistance level set by the last 27 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on MDVN:
Medivation, Inc., a biopharmaceutical company, focuses on the development and commercialization of novel therapies to treat serious diseases in the United States. It offers XTANDI for the treatment of post-chemotherapy metastatic castration-resistant prostate cancer (mCRPC) patients. MDVN has a PE ratio of 27. Currently there are 8 analysts that rate Medivation a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Medivation has been 2.0 million shares per day over the past 30 days. Medivation has a market cap of $7.3 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.68 and a short float of 3.4% with 2.71 days to cover. Shares are down 12.6% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Medivation as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 5.2%. Since the same quarter one year prior, revenues rose by 18.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, MDVN has a quick ratio of 2.49, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for MEDIVATION INC is currently lower than what is desirable, coming in at 32.00%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 14.70% significantly trails the industry average.
- Net operating cash flow has significantly decreased to $10.02 million or 79.61% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, MEDIVATION INC has marginally lower results.
- You can view the full Medivation Ratings Report.
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