Geron (GERN) Strong On High Relative Volume Today

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 Geron ( GERN) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Geron as such a stock due to the following factors:

  • GERN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.3 million.
  • GERN has traded 491,558 shares today.
  • GERN is trading at 3.30 times the normal volume for the stock at this time of day.
  • GERN is trading at a new high 3.20% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 GERN:

Geron Corporation, a clinical stage biopharmaceutical company, develops a telomerase inhibitor, imetelstat, to treat hematologic myeloid malignancies. The company was founded in 1990 and is based in Menlo Park, California. Currently there are 2 analysts that rate Geron a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Geron has been 2.7 million shares per day over the past 30 days. Geron has a market cap of $338.9 million and is part of the health care sector and drugs industry. The stock has a beta of 2.31 and a short float of 18.8% with 14.56 days to cover. Shares are down 53.8% year-to-date as of the close of trading on Wednesday.

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 Geron as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • GERN has underperformed the S&P 500 Index, declining 7.97% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Biotechnology industry average, but is greater than that of the S&P 500. The net income increased by 2.4% when compared to the same quarter one year prior, going from -$8.95 million to -$8.73 million.
  • 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, GERON CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to -$5.15 million or 35.03% when compared to the same quarter last year. Despite an increase in cash flow of 35.03%, GERON CORP is still growing at a significantly lower rate than the industry average of 100.84%.
  • GERN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 29.94, which clearly demonstrates the ability to cover short-term cash needs.

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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