Trade-Ideas LLC identified

IGI Laboratories

(

IG

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified IGI Laboratories as such a stock due to the following factors:

  • IG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.8 million.
  • IG has traded 373,037 shares today.
  • IG is trading at 2.35 times the normal volume for the stock at this time of day.
  • IG is trading at a new high 3.07% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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.

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More details on IG:

IGI Laboratories, Inc., a specialty generic pharmaceutical company, develops, manufactures, and markets topical formulations in the United States. It sells generic pharmaceutical products in topical, injectable, complex, and ophthalmic dosage forms under IGI label. IG has a PE ratio of 116. Currently there are 2 analysts that rate IGI Laboratories a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for IGI Laboratories has been 529,100 shares per day over the past 30 days. IGI has a market cap of $428.2 million and is part of the health care sector and drugs industry. The stock has a beta of 1.64 and a short float of 29.3% with 22.64 days to cover. Shares are down 11% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates IGI Laboratories as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, generally higher debt management risk and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 6.8%. Since the same quarter one year prior, revenues rose by 37.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • 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. When compared to other companies in the Pharmaceuticals industry and the overall market, IGI LABORATORIES INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • 42.88% is the gross profit margin for IGI LABORATORIES INC which we consider to be strong. Regardless of IG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, IG's net profit margin of 105.43% significantly outperformed against the industry.
  • The debt-to-equity ratio of 1.43 is relatively high when compared with the industry average, suggesting a need for better debt level management. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 12.68, which shows the ability to cover short-term cash needs.
  • Net operating cash flow has significantly decreased to -$5.68 million or 965.47% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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