SciClone Pharmaceuticals (SCLN) Flagged As Strong On High Volume

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 $2.6 million.
  • SCLN has traded 202,858 shares today.
  • SCLN is trading at 18.95 times the normal volume for the stock at this time of day.
  • SCLN is trading at a new high 26.28% 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 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 25.

The average volume for SciClone Pharmaceuticals has been 423,000 shares per day over the past 30 days. SciClone has a market cap of $396.5 million and is part of the health care sector and drugs industry. The stock has a beta of 2.08 and a short float of 8% with 15.45 days to cover. Shares are down 8.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates SciClone Pharmaceuticals as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 7.1%. Since the same quarter one year prior, revenues rose by 16.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in 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 3.72, which clearly demonstrates the ability to cover short-term cash needs.
  • After a year of stock price fluctuations, the net result is that SCLN's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Pharmaceuticals industry and the overall market, SCICLONE PHARMACEUTICALS INC's return on equity is below that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $4.54 million or 30.08% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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