Weak On High Volume: Geron (GERN)
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.
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Geron as such a stock due to the following factors:
- GERN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $31.4 million.
- GERN has traded 905,932 shares today.
- GERN is trading at 3.71 times the normal volume for the stock at this time of day.
- GERN is trading at a new low 7.04% 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 GERN:
Geron Corporation, a clinical stage biopharmaceutical company, develops a telomerase inhibitor, imetelstat, to treat hematologic myeloid malignancies. The company was founded in 1990 and is based in Menlo Park, California. Currently there are 2 analysts that rate Geron a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Geron has been 3.9 million shares per day over the past 30 days. Geron has a market cap of $651.3 million and is part of the health care sector and drugs industry. Shares are up 22.5% year-to-date as of the close of trading on Friday.
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Analysis:
rates Geron as a
. The area that we feel has been the company's primary weakness has been its unimpressive growth in net income.
Highlights from the ratings report include:
- The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Biotechnology industry average. The net income increased by 3.6% when compared to the same quarter one year prior, going from -$9.28 million to -$8.95 million.
- The revenue fell significantly faster than the industry average of 34.7%. Since the same quarter one year prior, revenues fell by 20.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- Investors have driven up the company's shares by 93.89% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the future course of this stock, we feel that the risks involved in investing in GERN do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
- GERON CORP has improved earnings per share by 14.3% 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. This trend suggests that the performance of the business is improving. During the past fiscal year, GERON CORP continued to lose money by earning -$0.24 versus -$0.29 in the prior year. This year, the market expects an improvement in earnings (-$0.03 versus -$0.24).
- You can view the full Geron Ratings Report.
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