Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Biomarin Pharmaceutical ( BMRN) 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 Biomarin Pharmaceutical as such a stock due to the following factors:
- BMRN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $147.0 million.
- BMRN has traded 2.1 million shares today.
- BMRN traded in a range 266% of the normal price range with a price range of $5.66.
- BMRN traded above its daily resistance level (quality: 37 days, meaning that the stock is crossing a resistance level set by the last 37 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. EXCLUSIVE OFFER: Get the inside scoop on opportunities in BMRN with the Ticky from Trade-Ideas. See the FREE profile for BMRN NOW at Trade-Ideas More details on BMRN: BioMarin Pharmaceutical Inc. develops and commercializes biopharmaceuticals for serious diseases and medical conditions in the United States, Europe, Latin America, and internationally. Currently there are 11 analysts that rate Biomarin Pharmaceutical a buy, no analysts rate it a sell, and 4 rate it a hold. The average volume for Biomarin Pharmaceutical has been 1.8 million shares per day over the past 30 days. Biomarin has a market cap of $9.1 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.24 and a short float of 6.3% with 2.76 days to cover. Shares are up 30.5% year to date as of the close of trading on Thursday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Biomarin Pharmaceutical as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and weak operating cash flow. Highlights from the ratings report include:
- BIOMARIN PHARMACEUTICAL INC 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, BIOMARIN PHARMACEUTICAL INC reported poor results of -$0.95 versus -$0.48 in the prior year. For the next year, the market is expecting a contraction of 25.4% in earnings (-$1.19 versus -$0.95).
- 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 Biotechnology industry. The net income has significantly decreased by 889.7% when compared to the same quarter one year ago, falling from -$5.36 million to -$53.02 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, BIOMARIN PHARMACEUTICAL 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 -$9.49 million or 166.77% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The gross profit margin for BIOMARIN PHARMACEUTICAL INC is currently very high, coming in at 88.69%. Regardless of BMRN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BMRN's net profit margin of -38.73% significantly underperformed when compared to the industry average.
- You can view the full Biomarin Pharmaceutical Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.