Trade-Ideas LLC identified

Pernix Therapeutics Holdings

(

PTX

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

  • PTX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.3 million.
  • PTX has traded 1.9 million shares today.
  • PTX is trading at 2.35 times the normal volume for the stock at this time of day.
  • PTX is trading at a new high 20.05% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in PTX with the Ticky from Trade-Ideas. See the FREE profile for PTX NOW at Trade-Ideas

More details on PTX:

TheStreet Recommends

Pernix Therapeutics Holdings, Inc., a specialty pharmaceutical company, develops, manufactures, markets, and sells pharmaceutical products. Currently there is 1 analyst that rates Pernix Therapeutics Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Pernix Therapeutics Holdings has been 2.7 million shares per day over the past 30 days. Pernix has a market cap of $25.1 million and is part of the health care sector and drugs industry. The stock has a beta of 1.68 and a short float of 8.9% with 0.46 days to cover. Shares are down 86.1% year-to-date as of the close of trading on Thursday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Pernix Therapeutics Holdings 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:

  • PTX's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 92.61%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.
  • PTX, with its decline in revenue, slightly underperformed the industry average of 4.8%. Since the same quarter one year prior, revenues slightly dropped by 4.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for PERNIX THERAPEUTICS HOLDINGS is rather high; currently it is at 65.39%. Regardless of PTX's high profit margin, it has managed to decrease from the same period last year.
  • PERNIX THERAPEUTICS HOLDINGS has improved earnings per share by 32.3% 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, PERNIX THERAPEUTICS HOLDINGS reported poor results of -$2.76 versus -$0.93 in the prior year. This year, the market expects an improvement in earnings (-$0.04 versus -$2.76).
  • Net operating cash flow has significantly increased by 82.57% to -$3.32 million when compared to the same quarter last year. In addition, PERNIX THERAPEUTICS HOLDINGS has also vastly surpassed the industry average cash flow growth rate of -19.28%.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.