Strong On High Relative Volume: SciClone Pharmaceuticals (SCLN)

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

  • SCLN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.0 million.
  • SCLN has traded 61,784 shares today.
  • SCLN is trading at 2.51 times the normal volume for the stock at this time of day.
  • SCLN is trading at a new high 5.13% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in SCLN with the Ticky from Trade-Ideas. See the FREE profile for SCLN NOW at Trade-Ideas

More details on SCLN:

SciClone Pharmaceuticals, Inc., a specialty pharmaceutical company, provides therapies for oncology, infectious diseases, and cardiovascular disorders in the People's Republic of China, the United States, and Hong Kong. SCLN has a PE ratio of 17.7. Currently there are no analysts that rate SciClone Pharmaceuticals a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for SciClone Pharmaceuticals has been 358,900 shares per day over the past 30 days. SciClone has a market cap of $422.9 million and is part of the health care sector and drugs industry. The stock has a beta of 1.79 and a short float of 8.7% with 10.66 days to cover. Shares are down 3.1% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates SciClone Pharmaceuticals as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 11.3%. Since the same quarter one year prior, revenues rose by 26.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • SCLN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.79, which clearly demonstrates the ability to cover short-term cash needs.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Pharmaceuticals industry and the overall market, SCICLONE PHARMACEUTICALS INC's return on equity exceeds that of both the industry average and the S&P 500.
  • This stock has managed to rise its share value by 77.80% over the past twelve months. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SCLN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Dow Tumbles as Trump Calls Off North Korea Summit

Dow Tumbles as Trump Calls Off North Korea Summit

Jim Cramer: Does Saudi Arabia Think Oil Prices Are Too High?

Jim Cramer: Does Saudi Arabia Think Oil Prices Are Too High?

Stocks Could Easily Crater Into Memorial Day Weekend

Stocks Could Easily Crater Into Memorial Day Weekend

Video: Here Is How Real Estate Investment Trusts Can Boost Your Portfolio

Video: Here Is How Real Estate Investment Trusts Can Boost Your Portfolio

Celgene Shares Rise on Plans to Increase Stock Buybacks

Celgene Shares Rise on Plans to Increase Stock Buybacks