Trade-Ideas LLC identified

TG Therapeutics

(

TGTX

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

  • TGTX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.8 million.
  • TGTX has traded 66,764 shares today.
  • TGTX is trading at 2.44 times the normal volume for the stock at this time of day.
  • TGTX is trading at a new low 3.05% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 TGTX:

TST Recommends

TG Therapeutics, Inc., a biopharmaceutical company, focuses on the acquisition, development, and commercialization of novel treatments for b-cell malignancies and autoimmune diseases. Currently there are 6 analysts that rate TG Therapeutics a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for TG Therapeutics has been 550,500 shares per day over the past 30 days. TG has a market cap of $482.1 million and is part of the health care sector and drugs industry. The stock has a beta of 1.31 and a short float of 20.6% with 9.66 days to cover. Shares are down 24% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates TG Therapeutics as a

sell

. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • Net operating cash flow has decreased to -$10.66 million or 32.39% 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.
  • TGTX'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 36.97%, 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.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Biotechnology industry and the overall market, TG THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Along with the stagnant revenue growth, the company underperformed against the industry average of 13.6%. Since the same quarter one year prior, revenues have remained constant. The stagnant revenue growth has not kept the company from increasing earnings per share.
  • TG THERAPEUTICS INC has improved earnings per share by 45.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TG THERAPEUTICS INC reported poor results of -$1.60 versus -$0.81 in the prior year. This year, the market expects an improvement in earnings (-$1.34 versus -$1.60).

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