Trade-Ideas LLC identified

Geron

(

GERN

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

  • GERN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.0 million.
  • GERN has traded 282,878 shares today.
  • GERN is trading at 2.19 times the normal volume for the stock at this time of day.
  • GERN is trading at a new low 5.28% 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 GERN:

Geron Corporation, a clinical stage biopharmaceutical company, focuses on the development of telomerase inhibitor, imetelstat, for treating hematologic myeloid malignancies. It has collaboration and license agreement with Janssen Biotech, Inc. Currently there are 3 analysts that rate Geron a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Geron has been 3.3 million shares per day over the past 30 days. Geron has a market cap of $436.7 million and is part of the health care sector and drugs industry. The stock has a beta of 2.60 and a short float of 21.2% with 11.86 days to cover. Shares are down 45.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Geron as a

hold

. 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 and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow.

Highlights from the ratings report include:

  • GERN's very impressive revenue growth greatly exceeded the industry average of 6.8%. Since the same quarter one year prior, revenues leaped by 22001.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • GERN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 19.79, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has declined marginally to -$4.91 million or 9.68% when compared to the same quarter last year. Despite a decrease in cash flow GERON CORP is still fairing well by exceeding its industry average cash flow growth rate of -36.71%.
  • GERN has underperformed the S&P 500 Index, declining 15.65% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

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