IntelliPharmaCeutics International (IPCI) Strong On High Relative Volume Today

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

  • IPCI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.8 million.
  • IPCI has traded 53,825 shares today.
  • IPCI is trading at 4.21 times the normal volume for the stock at this time of day.
  • IPCI is trading at a new high 3.18% 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.

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More details on IPCI:

Intellipharmaceutics International Inc., a pharmaceutical company, engages in the research, development, and manufacture of novel and generic controlled and targeted release oral solid dosage drugs in Canada. Currently there are 2 analysts that rate IntelliPharmaCeutics International a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for IntelliPharmaCeutics International has been 222,700 shares per day over the past 30 days. IntelliPharmaCeutics International has a market cap of $75.7 million and is part of the health care sector and drugs industry. The stock has a beta of 1.89 and a short float of 6.1% with 1.40 days to cover. Shares are up 53.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates IntelliPharmaCeutics International as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, disappointing return on equity, weak operating cash flow 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 Pharmaceuticals industry. The net income has significantly decreased by 141.6% when compared to the same quarter one year ago, falling from $2.20 million to -$0.92 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 Pharmaceuticals industry and the overall market, INTELLIPHARMACEUTICS INTL'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 -$0.13 million or 158.98% 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 share price of INTELLIPHARMACEUTICS INTL has not done very well: it is down 16.54% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • IPCI, with its very weak revenue results, has greatly underperformed against the industry average of 2.1%. Since the same quarter one year prior, revenues plummeted by 75.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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