Trade-Ideas: Sangamo BioSciences (SGMO) Is Today's Strong On High Relative Volume Stock - TheStreet

Trade-Ideas LLC identified

Sangamo BioSciences

(

SGMO

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

  • SGMO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.4 million.
  • SGMO has traded 62,715 shares today.
  • SGMO is trading at 2.15 times the normal volume for the stock at this time of day.
  • SGMO is trading at a new high 3.13% 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.

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

More details on SGMO:

Sangamo BioSciences, Inc., a clinical stage biopharmaceutical company, focused on the research, development, and commercialization of engineered DNA-binding proteins as novel therapeutic products for various monogenic and infectious diseases with unmet medical needs. Currently there are 6 analysts that rate Sangamo BioSciences a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Sangamo BioSciences has been 1.3 million shares per day over the past 30 days. Sangamo BioSciences has a market cap of $531.0 million and is part of the health care sector and drugs industry. The stock has a beta of 2.99 and a short float of 18.3% with 20.99 days to cover. Shares are down 47.5% year-to-date as of the close of trading on Friday.

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 Sangamo BioSciences 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, generally disappointing historical performance in the stock itself 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 underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Biotechnology industry average. The net income has decreased by 22.5% when compared to the same quarter one year ago, dropping from -$7.55 million to -$9.25 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Biotechnology industry and the overall market, SANGAMO BIOSCIENCES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$14.20 million or 146.15% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Looking at the price performance of SGMO's shares over the past 12 months, there is not much good news to report: the stock is down 37.15%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than 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.
  • SANGAMO BIOSCIENCES INC's earnings per share declined by 18.2% in the most recent quarter compared to 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, SANGAMO BIOSCIENCES INC continued to lose money by earning -$0.39 versus -$0.47 in the prior year. For the next year, the market is expecting a contraction of 53.8% in earnings (-$0.60 versus -$0.39).

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.