Trade-Ideas LLC identified

pSivida

(

PSDV

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

  • PSDV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.4 million.
  • PSDV has traded 311,273 shares today.
  • PSDV is trading at 6.44 times the normal volume for the stock at this time of day.
  • PSDV is trading at a new high 8.01% 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 PSDV:

pSivida Corp. develops sustained-release drug-delivery products for treating eye diseases in the United States and the United Kingdom. Currently there are 3 analysts that rate pSivida a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for pSivida has been 298,900 shares per day over the past 30 days. pSivida has a market cap of $128.6 million and is part of the health care sector and drugs industry. The stock has a beta of 0.72 and a short float of 3.1% with 0.57 days to cover. Shares are up 6.3% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates pSivida 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 feeble growth in its earnings per share.

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 Life Sciences Tools & Services industry. The net income has significantly decreased by 124.0% when compared to the same quarter one year ago, falling from $20.57 million to -$4.93 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 Life Sciences Tools & Services industry and the overall market, PSIVIDA CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to -$4.49 million or 12.49% 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.
  • PSIVIDA CORP 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, PSIVIDA CORP turned its bottom line around by earning $0.19 versus -$0.49 in the prior year. For the next year, the market is expecting a contraction of 415.8% in earnings (-$0.60 versus $0.19).
  • PSDV, with its very weak revenue results, has greatly underperformed against the industry average of 5.1%. Since the same quarter one year prior, revenues plummeted by 98.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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