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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

LDR

(

LDRH

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

  • LDRH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.4 million.
  • LDRH has traded 55,657 shares today.
  • LDRH is trading at 9.65 times the normal volume for the stock at this time of day.
  • LDRH is trading at a new high 8.11% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 LDRH:

TheStreet Recommends

LDR Holding Corporation, a medical device company, focuses on designing and commercializing various surgical technologies for the treatment of patients suffering from spine disorders in the United States and internationally. Currently there are 6 analysts that rate LDR a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for LDR has been 210,100 shares per day over the past 30 days. LDR has a market cap of $913.5 million and is part of the health care sector and health services industry. Shares are up 5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates LDR as a

sell

. Among the areas we feel are negative, one of the most important has been weak operating cash flow.

Highlights from the ratings report include:

  • Net operating cash flow has significantly decreased to -$4.24 million or 92.99% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • LDR HOLDING CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, LDR HOLDING CORP continued to lose money by earning -$0.44 versus -$0.98 in the prior year. For the next year, the market is expecting a contraction of 47.7% in earnings (-$0.65 versus -$0.44).
  • Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, LDR HOLDING CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for LDR HOLDING CORP is currently very high, coming in at 86.06%. 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 -7.91% is in-line with the industry average.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Health Care Equipment & Supplies industry average. The net income increased by 79.3% when compared to the same quarter one year prior, rising from -$15.11 million to -$3.13 million.

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