Trade-Ideas LLC identified

Keryx Biopharmaceuticals

(

KERX

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

  • KERX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.7 million.
  • KERX has traded 132,922 shares today.
  • KERX is trading at 2.03 times the normal volume for the stock at this time of day.
  • KERX is trading at a new low 3.08% 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 KERX:

Keryx Biopharmaceuticals, Inc., a biopharmaceutical company, focuses on providing therapies for patients with renal disease in the United States. Currently there are 5 analysts that rate Keryx Biopharmaceuticals a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Keryx Biopharmaceuticals has been 1.7 million shares per day over the past 30 days. Keryx has a market cap of $389.2 million and is part of the health care sector and drugs industry. The stock has a beta of 3.17 and a short float of 28.8% with 19.41 days to cover. Shares are down 23% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Keryx Biopharmaceuticals as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

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, KERYX BIOPHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for KERYX BIOPHARMACEUTICALS INC is currently extremely low, coming in at 12.64%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -730.63% is significantly below that of the industry average.
  • Net operating cash flow has decreased to -$28.82 million or 45.66% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, KERYX BIOPHARMACEUTICALS INC has marginally lower results.
  • KERX's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 71.33%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • 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 12.9% when compared to the same quarter one year prior, going from -$35.29 million to -$30.75 million.

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