Trade-Ideas LLC identified

PDL BioPharma

(

PDLI

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

  • PDLI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.2 million.
  • PDLI has traded 509,816 shares today.
  • PDLI is trading at 3.62 times the normal volume for the stock at this time of day.
  • PDLI is trading at a new low 8.03% 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 PDLI:

PDL BioPharma, Inc. manages a portfolio of patents and royalty assets in the United States and Europe. The company is involved in the humanization of monoclonal antibodies and the discovery of a new generation of targeted treatments for cancer and immunologic diseases. It offers Queen et al. The stock currently has a dividend yield of 10.6%. PDLI has a PE ratio of 3. Currently there are no analysts that rate PDL BioPharma a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for PDL BioPharma has been 2.5 million shares per day over the past 30 days. PDL BioPharma has a market cap of $927.6 million and is part of the health care sector and drugs industry. The stock has a beta of 0.81 and a short float of 31% with 14.01 days to cover. Shares are down 29.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates PDL BioPharma as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.2%. Since the same quarter one year prior, revenues slightly increased by 1.1%. 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.
  • PDLI's debt-to-equity ratio of 0.67 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that PDLI's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.50 is high and demonstrates strong liquidity.
  • Looking at the price performance of PDLI's shares over the past 12 months, there is not much good news to report: the stock is down 45.37%, 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 company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Biotechnology industry average. The net income has decreased by 15.0% when compared to the same quarter one year ago, dropping from $92.06 million to $78.26 million.

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