Strong On High Volume: BioDelivery Sciences International (BDSI)

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

  • BDSI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.9 million.
  • BDSI has traded 79,393 shares today.
  • BDSI is trading at 2.30 times the normal volume for the stock at this time of day.
  • BDSI is trading at a new high 8.17% 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 BDSI:

BioDelivery Sciences International, Inc., a specialty pharmaceutical company, develops and commercializes therapeutics in the areas of pain management and oncology supportive care. Currently there are 5 analysts that rate BioDelivery Sciences International a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for BioDelivery Sciences International has been 845,300 shares per day over the past 30 days. BioDelivery Sciences International has a market cap of $708.8 million and is part of the health care sector and drugs industry. The stock has a beta of 2.23 and a short float of 12.7% with 3.77 days to cover. Shares are up 128% year-to-date as of the close of trading on Monday.

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 BioDelivery Sciences International as a sell. Among the areas we feel are negative, one of the most important has been generally deteriorating net income.

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 Pharmaceuticals industry. The net income has significantly decreased by 36.6% when compared to the same quarter one year ago, falling from -$18.49 million to -$25.26 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 Pharmaceuticals industry and the overall market, BIODELIVERY SCIENCES INTL's return on equity significantly trails that of both the industry average and the S&P 500.
  • The revenue fell significantly faster than the industry average of 8.8%. Since the same quarter one year prior, revenues fell by 39.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • BIODELIVERY SCIENCES INTL' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, BIODELIVERY SCIENCES INTL reported poor results of -$1.51 versus -$0.04 in the prior year. This year, the market expects an improvement in earnings (-$1.12 versus -$1.51).
  • The gross profit margin for BIODELIVERY SCIENCES INTL is currently very high, coming in at 89.63%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -1386.16% is in-line with the industry average.

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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