Trade-Ideas: Dyax (DYAX) 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.

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

  • DYAX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $37.9 million.
  • DYAX has traded 110,438 shares today.
  • DYAX is up 3.3% today.
  • DYAX was down 6.7% yesterday.

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More details on DYAX:

Dyax Corp., a biopharmaceutical company, identifies, develops, and commercializes treatments for hereditary angioedema (HAE) and other plasma-kallikrein-mediated (PKM) disorders. It offers KALBITOR for the treatment of acute attacks of HAE. Currently there are 7 analysts that rate Dyax a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Dyax has been 1.9 million shares per day over the past 30 days. Dyax has a market cap of $3.5 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.49 and a short float of 4.2% with 5.30 days to cover. Shares are up 82.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Dyax as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins 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 underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Biotechnology industry average. The net income has decreased by 16.6% when compared to the same quarter one year ago, dropping from -$1.96 million to -$2.29 million.
  • The gross profit margin for DYAX CORP is currently extremely low, coming in at 2.19%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -8.79% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$3.86 million or 137.20% 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, DYAX CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • DYAX CORP reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, DYAX CORP continued to lose money by earning -$0.10 versus -$0.27 in the prior year. For the next year, the market is expecting a contraction of 90.0% in earnings (-$0.19 versus -$0.10).

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