Trade-Ideas LLC identified

Raptor Pharmaceutical

(

RPTP

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

  • RPTP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.0 million.
  • RPTP has traded 152,808 shares today.
  • RPTP is trading at 2.92 times the normal volume for the stock at this time of day.
  • RPTP is trading at a new high 3.35% 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.

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More details on RPTP:

Raptor Pharmaceutical Corp., a biopharmaceutical company, focuses on developing and commercializing life-altering therapeutics that treat debilitating and often fatal diseases. Currently there are 2 analysts that rate Raptor Pharmaceutical a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Raptor Pharmaceutical has been 1.0 million shares per day over the past 30 days. Raptor has a market cap of $306.4 million and is part of the health care sector and drugs industry. The stock has a beta of 0.49 and a short float of 13.1% with 8.78 days to cover. Shares are down 25.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Raptor Pharmaceutical as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and generally disappointing historical performance in the stock itself.

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 Biotechnology industry. The net income has significantly decreased by 141.8% when compared to the same quarter one year ago, falling from -$6.03 million to -$14.59 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 59.61%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 80.00% 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.
  • 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 Biotechnology industry and the overall market, RAPTOR PHARMACEUTICAL CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Even though the current debt-to-equity ratio is 1.03, it is still below the industry average, suggesting that this level of debt is acceptable within the Biotechnology industry. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 5.78 is very high and demonstrates very strong liquidity.
  • RAPTOR PHARMACEUTICAL CORP 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. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, RAPTOR PHARMACEUTICAL CORP continued to lose money by earning -$0.83 versus -$1.22 in the prior year. This year, the market expects an improvement in earnings (-$0.78 versus -$0.83).

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