Trade-Ideas LLC identified

Pacific Biosciences of California

(

PACB

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

  • PACB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $27.4 million.
  • PACB has traded 294,258 shares today.
  • PACB is trading at 2.44 times the normal volume for the stock at this time of day.
  • PACB is trading at a new high 4.11% 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 PACB with the Ticky from Trade-Ideas. See the FREE profile for PACB NOW at Trade-Ideas

More details on PACB:

Pacific Biosciences of California, Inc. designs, develops, manufactures, and markets an integrated platform for genetic analysis. The company provides single molecule real-time (SMRT) technology platform, which enables single molecule real-time detection of biological processes. Currently there are 4 analysts that rate Pacific Biosciences of California a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Pacific Biosciences of California has been 2.6 million shares per day over the past 30 days. Pacific Biosciences of California has a market cap of $939.9 million and is part of the health care sector and drugs industry. The stock has a beta of 2.38 and a short float of 28% with 6.04 days to cover. Shares are up 52% year-to-date as of the close of trading on Monday.

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 Pacific Biosciences of California as a

sell

. Among the areas we feel are negative, one of the most important has been weak operating cash flow.

Highlights from the ratings report include:

  • Net operating cash flow has significantly decreased to -$15.77 million or 152.92% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Life Sciences Tools & Services industry and the overall market, PACIFIC BIOSCIENCES OF CALIF's return on equity significantly trails that of both the industry average and the S&P 500.
  • PACB, with its decline in revenue, underperformed when compared the industry average of 5.2%. Since the same quarter one year prior, revenues fell by 32.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for PACIFIC BIOSCIENCES OF CALIF is rather high; currently it is at 53.17%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, PACB's net profit margin of 13.08% compares favorably to the industry average.
  • The current debt-to-equity ratio, 0.36, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, PACB has a quick ratio of 1.63, which demonstrates the ability of the company to cover short-term liquidity needs.

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.