Trade-Ideas LLC identified

Medivation

(

MDVN

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

  • MDVN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $57.3 million.
  • MDVN has traded 311,267 shares today.
  • MDVN is trading at 3.47 times the normal volume for the stock at this time of day.
  • MDVN is trading at a new low 6.01% 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.

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More details on MDVN:

TheStreet Recommends

Medivation, Inc., a biopharmaceutical company, focuses on the development and commercialization of novel therapies to treat serious diseases in the United States. It offers XTANDI for the treatment of post-chemotherapy metastatic castration-resistant prostate cancer (mCRPC) patients. MDVN has a PE ratio of 28. Currently there are 8 analysts that rate Medivation a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Medivation has been 2.1 million shares per day over the past 30 days. Medivation has a market cap of $7.5 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.99 and a short float of 3.4% with 3.38 days to cover. Shares are down 6.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Medivation as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • MDVN's revenue growth has slightly outpaced the industry average of 10.3%. Since the same quarter one year prior, revenues rose by 18.6%. 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 current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, MDVN has a quick ratio of 2.49, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for MEDIVATION INC is currently lower than what is desirable, coming in at 32.00%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 14.70% significantly trails the industry average.
  • Net operating cash flow has significantly decreased to $10.02 million or 79.61% 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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