Trade-Ideas LLC identified

Biomarin Pharmaceutical

(

BMRN

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Biomarin Pharmaceutical as such a stock due to the following factors:

  • BMRN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $153.9 million.
  • BMRN has traded 147,079 shares today.
  • BMRN is trading at 2.04 times the normal volume for the stock at this time of day.
  • BMRN is trading at a new high 3.01% 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 BMRN:

BioMarin Pharmaceutical Inc. develops and commercializes pharmaceuticals for serious diseases and medical conditions in the United States, Europe, Latin America, and internationally. Currently there are 13 analysts that rate Biomarin Pharmaceutical a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Biomarin Pharmaceutical has been 2.0 million shares per day over the past 30 days. Biomarin has a market cap of $12.7 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.76 and a short float of 5% with 3.68 days to cover. Shares are down 25.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Biomarin Pharmaceutical as a

sell

. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • Net operating cash flow has significantly decreased to -$68.04 million or 154.08% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • BMRN's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 34.80%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • BIOMARIN PHARMACEUTICAL 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. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, BIOMARIN PHARMACEUTICAL INC reported poor results of -$1.15 versus -$0.92 in the prior year. For the next year, the market is expecting a contraction of 111.3% in earnings (-$2.43 versus -$1.15).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Biotechnology industry and the overall market, BIOMARIN PHARMACEUTICAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • BMRN, with its decline in revenue, slightly underperformed the industry average of 6.8%. Since the same quarter one year prior, revenues slightly dropped by 0.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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