Trade-Ideas LLC identified

Omeros

(

OMER

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

  • OMER has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.4 million.
  • OMER has traded 128,900 shares today.
  • OMER is trading at 9.60 times the normal volume for the stock at this time of day.
  • OMER is trading at a new high 4.29% 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 OMER:

Omeros Corporation, a biopharmaceutical company, discovers, develops, and commercializes small-molecule and protein therapeutics, and orphan indications targeting inflammation, coagulopathies, and disorders of the central nervous system. Currently there are 6 analysts that rate Omeros a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Omeros has been 368,000 shares per day over the past 30 days. Omeros has a market cap of $420.7 million and is part of the health care sector and drugs industry. The stock has a beta of 3.63 and a short float of 23.2% with 30.08 days to cover. Shares are down 28.9% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Omeros as a

sell

. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • Looking at the price performance of OMER's shares over the past 12 months, there is not much good news to report: the stock is down 41.96%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than 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 change in net income from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Pharmaceuticals industry average. The net income has decreased by 10.0% when compared to the same quarter one year ago, dropping from -$18.67 million to -$20.54 million.
  • OMEROS CORP's earnings per share declined by 5.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, OMEROS CORP continued to lose money by earning -$2.00 versus -$2.22 in the prior year. This year, the market expects an improvement in earnings (-$1.89 versus -$2.00).
  • Net operating cash flow has slightly increased to -$16.63 million or 4.85% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -8.37%.
  • OMER's very impressive revenue growth greatly exceeded the industry average of 0.6%. Since the same quarter one year prior, revenues leaped by 1812.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.

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