Strong On High Volume: Anacor Pharmaceuticals (ANAC)
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
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Anacor Pharmaceuticals as such a stock due to the following factors:
- ANAC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $34.2 million.
- ANAC has traded 191,249 shares today.
- ANAC is trading at 14.19 times the normal volume for the stock at this time of day.
- ANAC is trading at a new high 10.31% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 ANAC:
Anacor Pharmaceuticals, Inc., a biopharmaceutical company, focuses on discovering, developing, and commercializing novel small-molecule therapeutics derived from its boron chemistry platform. ANAC has a PE ratio of 34.2. Currently there are 4 analysts that rate Anacor Pharmaceuticals a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Anacor Pharmaceuticals has been 487,000 shares per day over the past 30 days. Anacor has a market cap of $2.1 billion and is part of the health care sector and drugs industry. The stock has a beta of 2.02 and a short float of 19.2% with 9.91 days to cover. Shares are up 50.5% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Anacor Pharmaceuticals as a
. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and feeble growth in the company's earnings per share.
Highlights from the ratings report include:
- Compared to other companies in the Biotechnology industry and the overall market, ANACOR PHARMACEUTICALS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has significantly increased by 200.69% to $12.58 million when compared to the same quarter last year. In addition, ANACOR PHARMACEUTICALS INC has also vastly surpassed the industry average cash flow growth rate of 50.58%.
- Despite currently having a low debt-to-equity ratio of 0.42, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 5.92 is very high and demonstrates very strong liquidity.
- ANACOR PHARMACEUTICALS 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ANACOR PHARMACEUTICALS INC turned its bottom line around by earning $1.82 versus -$1.77 in the prior year. For the next year, the market is expecting a contraction of 231.0% in earnings (-$2.39 versus $1.82).
- 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 Biotechnology industry. The net income has significantly decreased by 86.5% when compared to the same quarter one year ago, falling from -$16.81 million to -$31.34 million.
- You can view the full Anacor Pharmaceuticals Ratings Report.
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