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Trade-Ideas LLC identified

AEterna Zentaris

(

AEZS

) as a "dead cat bounce" (down big yesterday but up big today) 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 $59.8 million.
  • AEZS has traded 85,916 shares today.
  • AEZS is up 4.8% today.
  • AEZS was down 5.5% yesterday.

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More details on AEZS:

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.

TheStreet Recommends

The average volume for AEterna Zentaris has been 1.4 million shares per day over the past 30 days. AEterna Zentaris has a market cap of $56.0 million and is part of the health care sector and drugs industry. The stock has a beta of -0.03 and a short float of 2.1% with 0.00 days to cover. Shares are down 86.1% year-to-date as of the close of trading on Thursday.

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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 underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Biotechnology industry average. 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 78.36%, 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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