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Trade-Ideas LLC identified
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Pacira Pharmaceuticals as such a stock due to the following factors:
- PCRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $61.3 million.
- PCRX has traded 263,852 shares today.
- PCRX traded in a range 288.5% of the normal price range with a price range of $6.92.
- PCRX traded above its daily resistance level (quality: 13 days, meaning that the stock is crossing a resistance level set by the last 13 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on PCRX:
Pacira Pharmaceuticals, Inc., a specialty pharmaceutical company, develops, commercializes, and manufactures proprietary pharmaceutical products primarily for use in hospitals and ambulatory surgery centers in the United States. Currently there are 6 analysts that rate Pacira Pharmaceuticals a buy, 1 analyst rates it a sell, and 1 rates it a hold.
The average volume for Pacira Pharmaceuticals has been 706,900 shares per day over the past 30 days. Pacira has a market cap of $2.2 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.85 and a short float of 17% with 5.55 days to cover. Shares are down 33.8% year-to-date as of the close of trading on Wednesday.
rates Pacira Pharmaceuticals as a
. 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 impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
Highlights from the ratings report include:
- PCRX's very impressive revenue growth greatly exceeded the industry average of 4.5%. Since the same quarter one year prior, revenues leaped by 59.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.57, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.31, which illustrates the ability to avoid short-term cash problems.
- The gross profit margin for PACIRA PHARMACEUTICALS INC is currently very high, coming in at 74.56%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, PCRX's net profit margin of 2.16% significantly trails the industry average.
- 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, PACIRA PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- PCRX's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 28.23%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.
- You can view the full Pacira Pharmaceuticals Ratings Report.