Cleveland BioLabs (CBLI): Today's Weak On High Volume Stock

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 Cleveland BioLabs ( CBLI) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Cleveland BioLabs as such a stock due to the following factors:

  • CBLI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.9 million.
  • CBLI has traded 63,184 shares today.
  • CBLI is trading at 2.17 times the normal volume for the stock at this time of day.
  • CBLI is trading at a new low 8.20% 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 CBLI:

Cleveland BioLabs, Inc., a biopharmaceutical company, focuses on developing pharmaceuticals designed to address diseases with unmet medical need. CBLI has a PE ratio of 36. Currently there are no analysts that rate Cleveland BioLabs a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Cleveland BioLabs has been 203,000 shares per day over the past 30 days. Cleveland BioLabs has a market cap of $12.9 million and is part of the health care sector and drugs industry. The stock has a beta of 3.08 and a short float of 0.4% with 0.15 days to cover. Shares are down 46.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Cleveland BioLabs as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and generally disappointing historical performance in the stock itself.

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 Biotechnology industry. The net income has significantly decreased by 130.3% when compared to the same quarter one year ago, falling from -$1.59 million to -$3.65 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 81.21%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 90.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • CLEVELAND BIOLABS INC 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. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, CLEVELAND BIOLABS INC turned its bottom line around by earning $0.40 versus -$7.80 in the prior year.
  • CBLI, with its very weak revenue results, has greatly underperformed against the industry average of 19.7%. Since the same quarter one year prior, revenues plummeted by 54.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Net operating cash flow has increased to -$2.23 million or 21.35% when compared to the same quarter last year. Despite an increase in cash flow of 21.35%, CLEVELAND BIOLABS INC is still growing at a significantly lower rate than the industry average of 146.20%.

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