Trade-Ideas LLC identified

Sucampo Pharmaceuticals

(

SCMP

) as a "dead cat bounce" (down big yesterday but up big today) 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 $15.8 million.
  • SCMP has traded 66,029 shares today.
  • SCMP is up 3.8% today.
  • SCMP was down 5.6% yesterday.

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More details on SCMP:

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 32. Currently there are 2 analysts that rate Sucampo Pharmaceuticals a buy, no analysts rate it a sell, and 1 rates it a hold.

TST Recommends

The average volume for Sucampo Pharmaceuticals has been 1.1 million shares per day over the past 30 days. Sucampo has a market cap of $845.6 million and is part of the health care sector and drugs industry. The stock has a beta of 1.70 and a short float of 32.9% with 5.98 days to cover. Shares are up 23.6% year-to-date as of the close of trading on Wednesday.

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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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and impressive record of earnings per share growth. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 7.1%. Since the same quarter one year prior, revenues rose by 44.9%. 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 0.20 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 4.05, 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.
  • Powered by its strong earnings growth of 425.00% and other important driving factors, this stock has surged by 181.15% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SCMP should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 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 ($0.72 versus $0.30).

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