Trade-Ideas LLC identified

Pacific Biosciences of California

(

PACB

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Pacific Biosciences of California as such a stock due to the following factors:

  • PACB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $19.5 million.
  • PACB has traded 52,894 shares today.
  • PACB is up 3.9% today.
  • PACB was down 10.7% yesterday.

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More details on PACB:

Pacific Biosciences of California, Inc. designs, develops, manufactures, and markets an integrated platform for genetic analysis. The company provides single molecule real-time (SMRT) technology platform, which enables single molecule real-time detection of biological processes. Currently there are 4 analysts that rate Pacific Biosciences of California a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Recommends

The average volume for Pacific Biosciences of California has been 1.9 million shares per day over the past 30 days. Pacific Biosciences of California has a market cap of $586.3 million and is part of the health care sector and drugs industry. The stock has a beta of 0.88 and a short float of 32% with 5.68 days to cover. Shares are down 0.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Pacific Biosciences of California as a

sell

. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity.

Highlights from the ratings report include:

  • 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 Life Sciences Tools & Services industry and the overall market, PACIFIC BIOSCIENCES OF CALIF's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for PACIFIC BIOSCIENCES OF CALIF is rather high; currently it is at 61.93%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -47.85% is in-line with the industry average.
  • Net operating cash flow has increased to -$7.49 million or 44.97% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 0.96%.
  • The current debt-to-equity ratio, 0.43, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, PACB has a quick ratio of 1.96, which demonstrates the ability of the company to cover short-term liquidity needs.
  • This stock has increased by 31.30% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in PACB do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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