Retrophin (RTRX) Is Today's Dead Cat Bounce Stock
Trade-Ideas LLC identified
(
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Retrophin as such a stock due to the following factors:
- RTRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.9 million.
- RTRX has traded 423,371 shares today.
- RTRX is up 3.1% today.
- RTRX was down 13.4% yesterday.
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More details on RTRX:
Retrophin, Inc., a biopharmaceutical company, focuses on the development, acquisition, and commercialization of therapies for the treatment of serious, catastrophic, or rare diseases. Currently there is 1 analyst that rates Retrophin a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Retrophin has been 650,200 shares per day over the past 30 days. Retrophin has a market cap of $780.0 million and is part of the health care sector and drugs industry. The stock has a beta of 0.82 and a short float of 14.7% with 5.23 days to cover. Shares are up 54.4% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Retrophin as a
. The area that we feel has been the company's primary weakness has been its feeble growth in its earnings per share.
Highlights from the ratings report include:
- RETROPHIN INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, RETROPHIN INC reported poor results of -$5.96 versus -$2.38 in the prior year. This year, the market expects an improvement in earnings ($3.80 versus -$5.96).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 687.2% when compared to the same quarter one year prior, rising from -$17.98 million to $105.58 million.
- RTRX's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.90, which clearly demonstrates the ability to cover short-term cash needs.
- This stock has increased by 110.21% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in RTRX do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
- You can view the full Retrophin Ratings Report.
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