Trade-Ideas LLC identified

Sucampo Pharmaceuticals

(

SCMP

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

  • SCMP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.2 million.
  • SCMP has traded 173,839 shares today.
  • SCMP is trading at 11.26 times the normal volume for the stock at this time of day.
  • SCMP is trading at a new high 14.78% 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 SCMP with the Ticky from Trade-Ideas. See the FREE profile for SCMP NOW at Trade-Ideas

More details on SCMP:

TST Recommends

Sucampo Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the research and development of proprietary drugs in the Americas, Europe, and Asia. SCMP has a PE ratio of 19. Currently there are 4 analysts that rate Sucampo Pharmaceuticals a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Sucampo Pharmaceuticals has been 459,300 shares per day over the past 30 days. Sucampo has a market cap of $600.9 million and is part of the health care sector and drugs industry. The stock has a beta of 1.72 and a short float of 17.5% with 6.83 days to cover. Shares are down 19.4% 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 Sucampo Pharmaceuticals 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, notable return on equity, reasonable valuation levels and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • SCMP's revenue growth has slightly outpaced the industry average of 2.7%. Since the same quarter one year prior, revenues slightly increased by 6.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • SCMP's debt-to-equity ratio is very low at 0.18 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 4.70, which clearly demonstrates the ability to cover short-term cash needs.
  • 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. When compared to other companies in the Pharmaceuticals industry and the overall market, SUCAMPO PHARMACEUTICALS INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • SUCAMPO PHARMACEUTICALS 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. We feel that this trend should continue. During the past fiscal year, SUCAMPO PHARMACEUTICALS INC increased its bottom line by earning $0.30 versus $0.16 in the prior year. This year, the market expects an improvement in earnings ($0.71 versus $0.30).

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.