Trade-Ideas LLC identified

Cambrex

(

CBM

) as a strong on high relative volume 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 $22.2 million.
  • CBM has traded 114,018 shares today.
  • CBM is trading at 6.36 times the normal volume for the stock at this time of day.
  • CBM is trading at a new high 5.03% 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 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 23. 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 478,900 shares per day over the past 30 days. Cambrex has a market cap of $1.4 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.98 and a short float of 4.3% with 3.08 days to cover. Shares are up 118.7% 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, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations. 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 7.7%. Since the same quarter one year prior, revenues slightly increased by 8.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • CBM's debt-to-equity ratio is very low at 0.22 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.08, which illustrates the ability to avoid short-term cash problems.
  • 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.
  • 48.14% is the gross profit margin for CAMBREX CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.43% is above that of the industry average.
  • Net operating cash flow has significantly increased by 140.09% to $4.83 million when compared to the same quarter last year. In addition, CAMBREX CORP has also vastly surpassed the industry average cash flow growth rate of -2.02%.

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