Trade-Ideas LLC identified

POZEN

(

POZN

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

  • POZN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.6 million.
  • POZN has traded 50,613 shares today.
  • POZN is trading at 2.19 times the normal volume for the stock at this time of day.
  • POZN is trading at a new low 4.04% 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 POZN:

TheStreet Recommends

POZEN Inc., a pharmaceutical company, develops products for the treatment of acute and chronic pain, and pain related conditions in the United States and internationally. Currently there are 2 analysts that rate POZEN a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for POZEN has been 598,500 shares per day over the past 30 days. POZEN has a market cap of $250.4 million and is part of the health care sector and drugs industry. The stock has a beta of 1.94 and a short float of 9% with 4.17 days to cover. Shares are down 13.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates POZEN as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Pharmaceuticals industry. The net income has significantly decreased by 642.9% when compared to the same quarter one year ago, falling from $3.00 million to -$16.28 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Pharmaceuticals industry and the overall market, POZEN INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$3.19 million or 338.59% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • POZEN INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, POZEN INC turned its bottom line around by earning $0.59 versus -$0.55 in the prior year. For the next year, the market is expecting a contraction of 113.6% in earnings (-$0.08 versus $0.59).
  • POZN, with its decline in revenue, underperformed when compared the industry average of 6.7%. Since the same quarter one year prior, revenues fell by 29.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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