Trade-Ideas LLC identified

PTC Therapeutics

(

PTCT

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified PTC Therapeutics as such a stock due to the following factors:

  • PTCT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $36.7 million.
  • PTCT has traded 730,947 shares today.
  • PTCT is up 5.2% today.
  • PTCT was down 61.6% yesterday.

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More details on PTCT:

PTC Therapeutics, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of orally administered, small molecule drugs that target post-transcriptional control processes. Currently there are 6 analysts that rate PTC Therapeutics a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for PTC Therapeutics has been 823,400 shares per day over the past 30 days. PTC has a market cap of $968.5 million and is part of the health care sector and drugs industry. The stock has a beta of -0.45 and a short float of 39.1% with 3.19 days to cover. Shares are down 66.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates PTC Therapeutics as a

sell

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

Highlights from the ratings report include:

  • PTC THERAPEUTICS INC's earnings per share declined by 36.5% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, PTC THERAPEUTICS INC reported poor results of -$3.21 versus -$1.56 in the prior year. For the next year, the market is expecting a contraction of 51.1% in earnings (-$4.85 versus -$3.21).
  • 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 Biotechnology industry. The net income has significantly decreased by 58.4% when compared to the same quarter one year ago, falling from -$27.28 million to -$43.22 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, PTC THERAPEUTICS 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 -$27.76 million or 62.95% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 47.15%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 36.55% compared to 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.

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