Heavy Early Morning Activity On Cell Therapeutics (CTIC)

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 Cell Therapeutics ( CTIC) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Cell Therapeutics as such a stock due to the following factors:

  • CTIC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.2 million.
  • CTIC traded 617,088 shares today in the pre-market hours as of 8:59 AM, representing 13.3% of its average daily volume.

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More details on CTIC:

Cell Therapeutics, Inc. engages in the acquisition, development, and commercialization of treatments for cancer. Currently there are 2 analysts that rate Cell Therapeutics a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Cell Therapeutics has been 2.5 million shares per day over the past 30 days. Cell has a market cap of $231.2 million and is part of the health care sector and drugs industry. The stock has a beta of 1.75 and a short float of 7% with 1.60 days to cover. Shares are up 36.9% 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 Cell Therapeutics as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and weak operating cash flow.

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 against the S&P 500 and did not exceed that of the Biotechnology industry. The net income has decreased by 2.3% when compared to the same quarter one year ago, dropping from -$15.19 million to -$15.54 million.
  • Net operating cash flow has decreased to -$15.60 million or 24.17% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • 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 Biotechnology industry and the overall market, CELL THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The current debt-to-equity ratio, 0.52, 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 1.36, which illustrates the ability to avoid short-term cash problems.
  • The strong earnings growth this company has enjoyed -- up -- has apparently played a role in driving up its share price by a solid 32.57%. In addition, the rise in the general market has likely contributed to this stock's strong performance during this past year.Regarding the future course of this stock, we feel that the risks involved in investing in CTIC do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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