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Trade-Ideas LLC identified

LDR

(

LDRH

) as a weak 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 $7.1 million.
  • LDRH has traded 90,231 shares today.
  • LDRH is trading at 2.54 times the normal volume for the stock at this time of day.
  • LDRH is trading at a new low 3.12% 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 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 7 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 426,400 shares per day over the past 30 days. LDR has a market cap of $764.8 million and is part of the health care sector and health services industry. Shares are down 16.8% 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 weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • Net operating cash flow has significantly decreased to -$1.90 million or 59.52% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • LDRH has underperformed the S&P 500 Index, declining 20.66% 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.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry average. The net income has decreased by 3.4% when compared to the same quarter one year ago, dropping from -$2.02 million to -$2.09 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. 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.
  • LDR HOLDING CORP has improved earnings per share by 12.5% 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 33.0% in earnings (-$0.59 versus -$0.44).

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