Trade-Ideas LLC identified

RPX

(

RPXC

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

  • RPXC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.9 million.
  • RPXC has traded 74,244 shares today.
  • RPXC is trading at 2.08 times the normal volume for the stock at this time of day.
  • RPXC is trading at a new high 4.05% 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.

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More details on RPXC:

RPX Corporation provides patent risk management solutions in the United States, Japan, and internationally. It offers a subscription-based patent risk management solution that facilitates exchanges of value between owners and users of patents. RPXC has a PE ratio of 13. Currently there is 1 analyst that rates RPX a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for RPX has been 297,100 shares per day over the past 30 days. RPX has a market cap of $571.6 million and is part of the services sector and diversified services industry. The stock has a beta of 1.36 and a short float of 4.8% with 3.58 days to cover. Shares are down 22.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates RPX as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • RPXC's revenue growth has slightly outpaced the industry average of 1.9%. Since the same quarter one year prior, revenues slightly increased by 4.3%. 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.
  • RPXC's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.84, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has significantly increased by 72.94% to $30.46 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 33.00%.
  • The gross profit margin for RPX CORP is currently very high, coming in at 98.55%. Regardless of RPXC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, RPXC's net profit margin of 11.48% compares favorably to the industry average.

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