Today's Dead Cat Bounce Stock: Tekmira Pharmaceuticals (TKMR)

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 Tekmira Pharmaceuticals ( TKMR) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Tekmira Pharmaceuticals as such a stock due to the following factors:

  • TKMR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $172.2 million.
  • TKMR has traded 1.6 million shares today.
  • TKMR is up 3.2% today.
  • TKMR was down 21.8% yesterday.

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More details on TKMR:

Tekmira Pharmaceuticals Corporation, a biopharmaceutical company, focuses on the research and development of RNA interference therapeutics; and provides lipid nanoparticle delivery technology to pharmaceutical partners in Canada. Currently there are 5 analysts that rate Tekmira Pharmaceuticals a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Tekmira Pharmaceuticals has been 1.6 million shares per day over the past 30 days. Tekmira has a market cap of $525.4 million and is part of the health care sector and drugs industry. Shares are up 133.5% year-to-date as of the close of trading on Tuesday.

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 Tekmira Pharmaceuticals 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 and disappointing return on equity.

Highlights from the ratings report include:
  • TEKMIRA PHARMACEUTICALS CORP 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. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, TEKMIRA PHARMACEUTICALS CORP swung to a loss, reporting -$0.96 versus $1.87 in the prior year.
  • 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 585.9% when compared to the same quarter one year ago, falling from -$2.62 million to -$17.98 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, TEKMIRA PHARMACEUTICALS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 415.25% to $9.16 million when compared to the same quarter last year. In addition, TEKMIRA PHARMACEUTICALS CORP has also vastly surpassed the industry average cash flow growth rate of 96.45%.
  • Compared to its closing price of one year ago, TKMR's share price has jumped by 163.28%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in TKMR 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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