Trade-Ideas LLC identified

Pacific Biosciences of California

(

PACB

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

  • PACB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.1 million.
  • PACB has traded 615,925 shares today.
  • PACB is trading at 2.09 times the normal volume for the stock at this time of day.
  • PACB is trading at a new low 6.08% 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 PACB:

Pacific Biosciences of California, Inc. designs, develops, and manufactures sequencing systems to resolve genetically complex problems. The company's single molecule real-time (SMRT) sequencing technology enables single molecule real-time detection of biological processes. Currently there are 4 analysts that rate Pacific Biosciences of California a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Pacific Biosciences of California has been 1.8 million shares per day over the past 30 days. Pacific Biosciences of California has a market cap of $676.4 million and is part of the health care sector and drugs industry. The stock has a beta of 1.91 and a short float of 20.3% with 8.11 days to cover. Shares are down 42.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Pacific Biosciences of California as a

sell

. The area that we feel has been the company's primary weakness has been its feeble growth in its earnings per share.

Highlights from the ratings report include:

  • 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 Life Sciences Tools & Services industry and the overall market, PACIFIC BIOSCIENCES OF CALIF's return on equity significantly trails that of both the industry average and the S&P 500.
  • PACIFIC BIOSCIENCES OF CALIF has improved earnings per share by 14.8% 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 two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, PACIFIC BIOSCIENCES OF CALIF continued to lose money by earning -$0.43 versus -$0.94 in the prior year. For the next year, the market is expecting a contraction of 97.7% in earnings (-$0.85 versus -$0.43).
  • Net operating cash flow has increased to -$20.27 million or 15.23% when compared to the same quarter last year. Despite an increase in cash flow of 15.23%, PACIFIC BIOSCIENCES OF CALIF is still growing at a significantly lower rate than the industry average of 114.09%.
  • The gross profit margin for PACIFIC BIOSCIENCES OF CALIF is rather high; currently it is at 54.12%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -101.17% is in-line with the industry average.
  • Investors have driven up the company's shares by 64.12% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the future course of this stock, we feel that the risks involved in investing in PACB do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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