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

  • CLDX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $63.1 million.
  • CLDX has traded 56,698 shares today.
  • CLDX is up 3% today.
  • CLDX was down 15.8% yesterday.

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More details on CLDX:

Celldex Therapeutics, Inc., a biopharmaceutical company, develops, manufactures, and commercializes novel therapeutics for human health care in the United States. Currently there are 8 analysts that rate Celldex Therapeutics a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Celldex Therapeutics has been 2.2 million shares per day over the past 30 days. Celldex has a market cap of $2.7 billion and is part of the health care sector and drugs industry. The stock has a beta of 2.36 and a short float of 20.8% with 6.62 days to cover. Shares are up 63.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Celldex Therapeutics 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:
  • CELLDEX THERAPEUTICS INC's earnings per share declined by 33.3% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, CELLDEX THERAPEUTICS INC reported poor results of -$1.32 versus -$1.03 in the prior year. For the next year, the market is expecting a contraction of 7.6% in earnings (-$1.42 versus -$1.32).
  • 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 44.2% when compared to the same quarter one year ago, falling from -$22.06 million to -$31.82 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, CELLDEX THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to -$22.21 million or 48.51% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Compared to its closing price of one year ago, CLDX's share price has jumped by 103.33%, 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 CLDX do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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