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

  • CRMD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.1 million.
  • CRMD has traded 169,092 shares today.
  • CRMD is trading at 3.30 times the normal volume for the stock at this time of day.
  • CRMD is trading at a new low 9.14% 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 CRMD:

CorMedix Inc., a pharmaceutical company, intends to in-license, develop, and commercialize therapeutic products for the prevention and treatment of cardiac, renal, and infectious diseases. Currently there are no analysts that rate Cormedix a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Cormedix has been 915,400 shares per day over the past 30 days. Cormedix has a market cap of $150.9 million and is part of the health care sector and drugs industry. The stock has a beta of -6.03 and a short float of 14.1% with 2.27 days to cover. Shares are up 154.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Cormedix as a sell. Among the areas we feel are negative, one of the most important has been weak operating cash flow.

Highlights from the ratings report include:
  • Net operating cash flow has significantly decreased to -$2.35 million or 64.31% 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 other companies in the Biotechnology industry and the overall market, CORMEDIX INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • CORMEDIX INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CORMEDIX INC reported poor results of -$1.24 versus -$0.67 in the prior year. This year, the market expects an improvement in earnings (-$0.55 versus -$1.24).
  • 41.94% is the gross profit margin for CORMEDIX INC which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -17735.48% is in-line with the industry average.
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Biotechnology industry average. The net income increased by 67.1% when compared to the same quarter one year prior, rising from -$16.71 million to -$5.50 million.

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