Trade-Ideas LLC identified

Pacira Pharmaceuticals

(

PCRX

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

  • PCRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $61.1 million.
  • PCRX has traded 188,343 shares today.
  • PCRX is up 18% today.
  • PCRX was down 5.2% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in PCRX with the Ticky from Trade-Ideas. See the FREE profile for PCRX NOW at Trade-Ideas

More details on PCRX:

Pacira Pharmaceuticals, Inc., a specialty pharmaceutical company, develops, commercializes, and manufactures proprietary pharmaceutical products primarily for use in hospitals and ambulatory surgery centers in the United States. PCRX has a PE ratio of 317. Currently there are 6 analysts that rate Pacira Pharmaceuticals a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Pacira Pharmaceuticals has been 990,200 shares per day over the past 30 days. Pacira has a market cap of $1.4 billion and is part of the health care sector and drugs industry. The stock has a beta of 2.29 and a short float of 23.5% with 5.99 days to cover. Shares are down 51.1% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Pacira Pharmaceuticals as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 6.2%. Since the same quarter one year prior, revenues rose by 25.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • PACIRA PHARMACEUTICALS 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. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, PACIRA PHARMACEUTICALS INC continued to lose money by earning -$0.42 versus -$1.93 in the prior year. This year, the market expects an improvement in earnings ($0.77 versus -$0.42).
  • The gross profit margin for PACIRA PHARMACEUTICALS INC is currently very high, coming in at 79.80%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, PCRX's net profit margin of 0.01% significantly trails the industry average.
  • 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 Pharmaceuticals industry and the overall market, PACIRA PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • PCRX'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 62.49%, 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. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.