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 $14.9 million.
  • PACB has traded 401,173 shares today.
  • PACB is up 3% today.
  • PACB was down 5% yesterday.

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More details on PACB:

Pacific Biosciences of California, Inc. designs, develops, and manufactures sequencing systems to resolve genetically complex problems. The company's single molecule real-time (SMRT) sequencing technology enables single molecule real-time detection of biological processes. Currently there are 3 analysts that rate Pacific Biosciences of California a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Pacific Biosciences of California has been 1.4 million shares per day over the past 30 days. Pacific Biosciences of California has a market cap of $813.3 million and is part of the health care sector and drugs industry. The stock has a beta of 1.91 and a short float of 17.8% with 8.48 days to cover. Shares are down 32.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Pacific Biosciences of California as a

sell

. The area that we feel has been the company's primary weakness has been its feeble growth in its earnings per share.

Highlights from the ratings report include:

  • 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 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.
  • PACIFIC BIOSCIENCES OF CALIF has improved earnings per share by 14.8% 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, PACIFIC BIOSCIENCES OF CALIF continued to lose money by earning -$0.43 versus -$0.94 in the prior year. For the next year, the market is expecting a contraction of 97.7% in earnings (-$0.85 versus -$0.43).
  • 49.69% is the gross profit margin for PACIFIC BIOSCIENCES OF CALIF which we consider to be strong. 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 -101.17% is in-line with the industry average.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Life Sciences Tools & Services industry average. The net income increased by 4.1% when compared to the same quarter one year prior, going from -$20.17 million to -$19.35 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 11.9%. Since the same quarter one year prior, revenues slightly increased by 8.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.

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