Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

Tekmira Pharmaceuticals

(

TKMR

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Tekmira Pharmaceuticals as such a stock due to the following factors:

  • TKMR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $57.8 million.
  • TKMR has traded 882,477 shares today.
  • TKMR is down 3% today.
  • TKMR was up 7.2% yesterday.

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More details on TKMR:

Tekmira Pharmaceuticals Corporation, a biopharmaceutical company, focuses on the research and development of RNA interference therapeutics; and provides lipid nanoparticle delivery technology to pharmaceutical partners in Canada. Currently there are 4 analysts that rate Tekmira Pharmaceuticals a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Tekmira Pharmaceuticals has been 5.6 million shares per day over the past 30 days. Tekmira has a market cap of $397.5 million and is part of the health care sector and drugs industry. Shares are up 141.8% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Tekmira Pharmaceuticals as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • TEKMIRA PHARMACEUTICALS CORP's earnings per share declined by 27.3% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, TEKMIRA PHARMACEUTICALS CORP swung to a loss, reporting -$0.96 versus $1.87 in the prior year.
  • 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 95.8% when compared to the same quarter one year ago, falling from -$3.11 million to -$6.08 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, TEKMIRA PHARMACEUTICALS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$8.01 million or 173.84% 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 revenue fell significantly faster than the industry average of 43.4%. Since the same quarter one year prior, revenues fell by 38.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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