Trade-Ideas LLC identified

Cambrex

(

CBM

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Cambrex as such a stock due to the following factors:

  • CBM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.6 million.
  • CBM has traded 446,617 shares today.
  • CBM traded in a range 210.4% of the normal price range with a price range of $4.09.
  • CBM traded above its daily resistance level (quality: 17 days, meaning that the stock is crossing a resistance level set by the last 17 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' 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 positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on CBM:

TheStreet Recommends

Cambrex Corporation, a life sciences company, provides various products and services for the development and commercialization of new and generic therapeutics worldwide. CBM has a PE ratio of 15. Currently there is 1 analyst that rates Cambrex a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Cambrex has been 468,000 shares per day over the past 30 days. Cambrex has a market cap of $981.2 million and is part of the health care sector and drugs industry. The stock has a beta of 2.42 and a short float of 6.9% with 3.34 days to cover. Shares are down 30.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cambrex as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 4.0%. Since the same quarter one year prior, revenues rose by 14.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Powered by its strong earnings growth of 28.57% and other important driving factors, this stock has surged by 45.00% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CBM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • CAMBREX CORP has improved earnings per share by 28.6% 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 year. We feel that this trend should continue. During the past fiscal year, CAMBREX CORP increased its bottom line by earning $1.84 versus $0.98 in the prior year. This year, the market expects an improvement in earnings ($2.15 versus $1.84).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Life Sciences Tools & Services industry. The net income increased by 34.0% when compared to the same quarter one year prior, rising from $8.77 million to $11.75 million.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Life Sciences Tools & Services industry and the overall market, CAMBREX CORP's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.

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