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Trade-Ideas LLC identified

AEterna Zentaris

(

AEZS

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

  • AEZS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.8 million.
  • AEZS has traded 699,352 shares today.
  • AEZS is trading at 3.02 times the normal volume for the stock at this time of day.
  • AEZS is trading at a new high 12.09% 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 AEZS:

TheStreet Recommends

Aeterna Zentaris Inc., a specialty biopharmaceutical company, engages in developing and commercializing novel treatments in oncology, endocrinology, and women's health. Currently there are 4 analysts that rate AEterna Zentaris a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for AEterna Zentaris has been 1.9 million shares per day over the past 30 days. AEterna Zentaris has a market cap of $19.4 million and is part of the health care sector and drugs industry. The stock has a beta of 0.39 and a short float of 163.7% with 0.76 days to cover. Shares are down 31.7% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates AEterna Zentaris as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow 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 34.9% when compared to the same quarter one year ago, falling from -$11.34 million to -$15.29 million.
  • Net operating cash flow has declined marginally to -$7.15 million or 9.17% 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.
  • AEZS's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 94.44%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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, AETERNA ZENTARIS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • AETERNA ZENTARIS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, AETERNA ZENTARIS INC continued to lose money by earning -$31.00 versus -$89.00 in the prior year.

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