Trade-Ideas LLC identified

Celator Pharmaceuticals

(

CPXX

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Celator Pharmaceuticals as such a stock due to the following factors:

  • CPXX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $127.5 million.
  • CPXX has traded 130,186 shares today.
  • CPXX is up 5.9% today.
  • CPXX was down 14.8% yesterday.

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More details on CPXX:

Celator Pharmaceuticals, Inc., a clinical stage biopharmaceutical company, develops therapies to treat cancer. Currently there are 4 analysts that rate Celator Pharmaceuticals a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Celator Pharmaceuticals has been 1.8 million shares per day over the past 30 days. Celator has a market cap of $364.2 million and is part of the health care sector and drugs industry. Shares are up 611.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Celator Pharmaceuticals as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally high debt management risk.

Highlights from the ratings report include:

  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, CELATOR PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Currently the debt-to-equity ratio of 1.76 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 3.38, which shows the ability to cover short-term cash needs.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Biotechnology industry average, but is greater than that of the S&P 500. The net income increased by 4.9% when compared to the same quarter one year prior, going from -$5.48 million to -$5.21 million.
  • Along with the stagnant revenue growth, the company underperformed against the industry average of 6.8%. Since the same quarter one year prior, revenues have remained constant. The stagnant revenue growth has not kept the company from increasing earnings per share.
  • CELATOR PHARMACEUTICALS INC has improved earnings per share by 28.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CELATOR PHARMACEUTICALS INC reported poor results of -$0.62 versus -$0.27 in the prior year. This year, the market expects an improvement in earnings (-$0.60 versus -$0.62).

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