Trade-Ideas LLC identified

AEterna Zentaris

(

AEZS

) as a weak on high relative volume 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 $5.4 million.
  • AEZS has traded 9.0 million shares today.
  • AEZS is trading at 4.62 times the normal volume for the stock at this time of day.
  • AEZS is trading at a new low 6.21% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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

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 2 analysts that rate AEterna Zentaris a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for AEterna Zentaris has been 14.9 million shares per day over the past 30 days. AEterna Zentaris has a market cap of $16.1 million and is part of the health care sector and drugs industry. The stock has a beta of 2.51 and a short float of 6.6% with 0.11 days to cover. Shares are down 83.3% year-to-date as of the close of trading on Monday.

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 AEterna Zentaris as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, 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 significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 200.5% when compared to the same quarter one year ago, falling from -$5.02 million to -$15.10 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, AETERNA ZENTARIS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to -$8.12 million or 27.25% 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.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 93.39%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 55.55% compared to the year-earlier 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.
  • AETERNA ZENTARIS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, AETERNA ZENTARIS INC continued to lose money by earning -$0.31 versus -$0.89 in the prior year. This year, the market expects earnings to be in line with last year (-$0.31 versus -$0.31).

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.