Trade-Ideas LLC identified

Cambrex

(

CBM

) as a weak 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 $20.8 million.
  • CBM has traded 59,866 shares today.
  • CBM is trading at 3.27 times the normal volume for the stock at this time of day.
  • CBM is trading at a new low 3.07% 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 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 25. 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 550,300 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 2.39 and a short float of 7.7% with 5.54 days to cover. Shares are down 0.5% year-to-date as of the close of trading on Friday.

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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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 4.3%. Since the same quarter one year prior, revenues rose by 20.8%. 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 0.10 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 1.10, which illustrates the ability to avoid short-term cash problems.
  • 46.10% is the gross profit margin for CAMBREX CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 11.40% trails the industry average.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.

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