Trade-Ideas LLC identified

Cerus

(

CERS

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

  • CERS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.7 million.
  • CERS has traded 111,438 shares today.
  • CERS is trading at 2.32 times the normal volume for the stock at this time of day.
  • CERS is trading at a new low 3.01% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in CERS with the Ticky from Trade-Ideas. See the FREE profile for CERS NOW at Trade-Ideas

More details on CERS:

TheStreet Recommends

Cerus Corporation operates as a biomedical products company focuses on developing and commercializing the INTERCEPT Blood System to enhance blood safety. Currently there are 4 analysts that rate Cerus a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Cerus has been 1.0 million shares per day over the past 30 days. Cerus has a market cap of $523.6 million and is part of the health care sector and drugs industry. The stock has a beta of 1.44 and a short float of 21.2% with 12.65 days to cover. Shares are down 14.7% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cerus as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income has significantly decreased by 45.7% when compared to the same quarter one year ago, falling from -$10.76 million to -$15.68 million.
  • 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 Health Care Equipment & Supplies industry and the overall market, CERUS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has declined marginally to -$11.86 million or 1.01% when compared to the same quarter last year. Despite a decrease in cash flow CERUS CORP is still fairing well by exceeding its industry average cash flow growth rate of -16.95%.
  • CERUS CORP's earnings per share declined by 6.3% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, CERUS CORP reported poor results of -$0.69 versus -$0.64 in the prior year. This year, the market expects an improvement in earnings (-$0.62 versus -$0.69).
  • The revenue fell significantly faster than the industry average of 29.7%. Since the same quarter one year prior, revenues fell by 22.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.