Trade-Ideas LLC identified

Aegerion Pharmaceuticals

(

AEGR

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

  • AEGR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.6 million.
  • AEGR has traded 50,769 shares today.
  • AEGR is trading at 2.82 times the normal volume for the stock at this time of day.
  • AEGR is trading at a new high 3.02% 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 AEGR:

TheStreet Recommends

Aegerion Pharmaceuticals, Inc., a biopharmaceutical company, develops and commercializes therapies for patients with debilitating rare diseases in the United States. Currently there are 2 analysts that rate Aegerion Pharmaceuticals a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Aegerion Pharmaceuticals has been 606,100 shares per day over the past 30 days. Aegerion has a market cap of $428.7 million and is part of the health care sector and drugs industry. The stock has a beta of 1.33 and a short float of 52.4% with 15.28 days to cover. Shares are down 25.7% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Aegerion Pharmaceuticals as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, generally disappointing historical performance in the stock itself 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 compared to the Biotechnology industry average, but is greater than that of the S&P 500. The net income has decreased by 15.9% when compared to the same quarter one year ago, dropping from -$9.62 million to -$11.15 million.
  • Looking at the price performance of AEGR's shares over the past 12 months, there is not much good news to report: the stock is down 52.05%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than 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.
  • Currently the debt-to-equity ratio of 1.66 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Regardless of the company's weak debt-to-equity ratio, AEGR has managed to keep a strong quick ratio of 2.22, which demonstrates the ability to cover short-term cash needs.
  • AEGERION PHARMACEUTICALS INC's earnings per share declined by 18.2% in the most recent quarter compared to 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, AEGERION PHARMACEUTICALS INC continued to lose money by earning -$1.36 versus -$2.20 in the prior year. For the next year, the market is expecting a contraction of 59.5% in earnings (-$2.17 versus -$1.36).
  • 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, AEGERION PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.

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