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.

Trade-Ideas LLC identified Tekmira Pharmaceuticals ( TKMR) as a weak on high relative volume 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 $9.6 million.
  • TKMR has traded 229,099 shares today.
  • TKMR is trading at 2.04 times the normal volume for the stock at this time of day.
  • TKMR is trading at a new low 6.03% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 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 4 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 720,600 shares per day over the past 30 days. Tekmira has a market cap of $884.8 million and is part of the health care sector and drugs industry. The stock has a beta of -0.66 and a short float of 17.2% with 7.35 days to cover. Shares are up 25.4% year-to-date as of the close of trading on Friday.

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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, disappointing return on equity and weak operating cash flow.

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 reported poor results of -$1.85 versus -$0.96 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 139.1% when compared to the same quarter one year ago, falling from -$2.58 million to -$6.17 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 decreased to -$6.85 million or 340.54% 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 revenue fell significantly faster than the industry average of 36.4%. Since the same quarter one year prior, revenues fell by 42.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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