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Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Vivus as such a stock due to the following factors:
- VVUS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.4 million.
- VVUS has traded 225,672 shares today.
- VVUS is trading at 2.65 times the normal volume for the stock at this time of day.
- VVUS is trading at a new low 3.14% 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 VVUS:
VIVUS, Inc., a biopharmaceutical company, develops and commercializes therapies to address unmet needs in obesity, sleep apnea, diabetes, and sexual health in the United States and the European Union. Currently there is 1 analyst that rates Vivus a buy, 3 analysts rate it a sell, and 2 rate it a hold.
The average volume for Vivus has been 2.3 million shares per day over the past 30 days. Vivus has a market cap of $309.6 million and is part of the health care sector and drugs industry. The stock has a beta of 1.10 and a short float of 38.7% with 14.21 days to cover. Shares are down 0.3% year-to-date as of the close of trading on Thursday.
rates Vivus as a
. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, 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 significantly underperformed when compared to that of the S&P 500 and the Pharmaceuticals industry. The net income has significantly decreased by 48.3% when compared to the same quarter one year ago, falling from -$17.16 million to -$25.45 million.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 54.02%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 47.05% 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.
- The debt-to-equity ratio is very high at 2.76 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 5.42, which shows the ability to cover short-term cash needs.
- VIVUS INC's earnings per share declined by 47.0% 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, VIVUS INC continued to lose money by earning -$0.80 versus -$1.73 in the prior year. For the next year, the market is expecting a contraction of 38.8% in earnings (-$1.11 versus -$0.80).
- 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. Compared to other companies in the Pharmaceuticals industry and the overall market, VIVUS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Vivus Ratings Report.