Trade-Ideas LLC identified

Keryx Biopharmaceuticals

(

KERX

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Keryx Biopharmaceuticals as such a stock due to the following factors:

  • KERX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.7 million.
  • KERX has traded 294,928 shares today.
  • KERX is down 3.1% today.
  • KERX was up 6.7% yesterday.

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More details on KERX:

Keryx Biopharmaceuticals, Inc., a biopharmaceutical company, focuses on providing therapies for patients with renal disease in the United States. Currently there are 7 analysts that rate Keryx Biopharmaceuticals a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Keryx Biopharmaceuticals has been 1.3 million shares per day over the past 30 days. Keryx has a market cap of $778.8 million and is part of the health care sector and drugs industry. The stock has a beta of 2.98 and a short float of 21.6% with 4.99 days to cover. Shares are up 45.7% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Keryx Biopharmaceuticals as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and generally high debt management risk.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 47.7% when compared to the same quarter one year ago, falling from -$27.74 million to -$40.96 million.
  • 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 Biotechnology industry and the overall market, KERYX BIOPHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The debt-to-equity ratio is very high at 2.16 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 2.50, which shows the ability to cover short-term cash needs.
  • The share price of KERYX BIOPHARMACEUTICALS INC has not done very well: it is down 9.03% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • KERYX BIOPHARMACEUTICALS INC's earnings per share declined by 39.3% 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, KERYX BIOPHARMACEUTICALS INC continued to lose money by earning -$1.19 versus -$1.21 in the prior year. This year, the market expects an improvement in earnings (-$0.97 versus -$1.19).

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