Trade-Ideas: Amicus Therapeutics (FOLD) Is Today's

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 Amicus Therapeutics ( FOLD) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Amicus Therapeutics as such a stock due to the following factors:

  • FOLD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.1 million.
  • FOLD has traded 95,724 shares today.
  • FOLD is down 3% today.
  • FOLD was up 6% yesterday.

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More details on FOLD:

Amicus Therapeutics, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of medicines for various rare and orphan diseases. Currently there are 2 analysts that rate Amicus Therapeutics a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Amicus Therapeutics has been 1.6 million shares per day over the past 30 days. Amicus has a market cap of $624.7 million and is part of the health care sector and drugs industry. The stock has a beta of 3.06 and a short float of 5.9% with 0.98 days to cover. Shares are up 241.7% year-to-date as of the close of trading on Friday.

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 Amicus Therapeutics as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating 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 when compared to that of the S&P 500 and the Biotechnology industry. The net income has decreased by 17.5% when compared to the same quarter one year ago, dropping from -$14.59 million to -$17.15 million.
  • Net operating cash flow has decreased to -$15.12 million or 11.90% 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 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, AMICUS THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • AMICUS THERAPEUTICS INC has improved earnings per share by 24.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AMICUS THERAPEUTICS INC reported poor results of -$1.17 versus -$1.09 in the prior year. This year, the market expects an improvement in earnings (-$0.88 versus -$1.17).
  • Investors have driven up the company's shares by 300.00% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the future course of this stock, we feel that the risks involved in investing in FOLD 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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