Trade-Ideas LLC identified

Cesca Therapeutics

(

KOOL

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

  • KOOL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.6 million.
  • KOOL has traded 53,341 shares today.
  • KOOL is trading at 7.54 times the normal volume for the stock at this time of day.
  • KOOL is trading at a new low 9.61% 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 KOOL:

Cesca Therapeutics Inc. focuses on the research, development, and commercialization of autologous cell-based therapeutics for use in regenerative medicine in the United States and internationally. Currently there are no analysts that rate Cesca Therapeutics a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Cesca Therapeutics has been 208,400 shares per day over the past 30 days. Cesca has a market cap of $10.0 million and is part of the health care sector and health services industry. The stock has a beta of -1.56 and a short float of 2.1% with 0.03 days to cover. Shares are down 8.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cesca Therapeutics as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • 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 Health Care Equipment & Supplies industry and the overall market, CESCA THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to -$3.19 million or 46.01% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • KOOL'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 80.18%, 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.
  • The revenue fell significantly faster than the industry average of 30.8%. Since the same quarter one year prior, revenues fell by 29.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • 40.13% is the gross profit margin for CESCA THERAPEUTICS INC which we consider to be strong. Regardless of KOOL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, KOOL's net profit margin of -18.94% significantly underperformed when compared to the industry average.

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