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 $7.6 million.
  • LDRH has traded 50,879 shares today.
  • LDRH is trading at 5.17 times the normal volume for the stock at this time of day.
  • LDRH is trading at a new high 7.03% 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:

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 2 rate it a hold.

The average volume for LDR has been 474,500 shares per day over the past 30 days. LDR has a market cap of $599.7 million and is part of the health care sector and health services industry. Shares are down 11.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates LDR as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • LDR HOLDING CORP's earnings per share declined by 33.3% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, LDR HOLDING CORP reported poor results of -$0.57 versus -$0.44 in the prior year. For the next year, the market is expecting a contraction of 32.5% in earnings (-$0.76 versus -$0.57).
  • 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 51.9% when compared to the same quarter one year ago, falling from -$3.13 million to -$4.76 million.
  • Net operating cash flow has significantly decreased to -$8.62 million or 103.08% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 44.16%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 33.33% compared to the year-earlier 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 return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. 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.

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