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

  • SQNM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.5 million.
  • SQNM has traded 111,307 shares today.
  • SQNM is trading at 2.76 times the normal volume for the stock at this time of day.
  • SQNM is trading at a new high 7.48% 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 SQNM:

Sequenom, Inc., a life sciences company, develops and commercializes molecular diagnostics testing services for the women's health and oncology markets in the United States and internationally. SQNM has a PE ratio of 13. Currently there are no analysts that rate Sequenom a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Sequenom has been 1.2 million shares per day over the past 30 days. Sequenom has a market cap of $166.0 million and is part of the health care sector and drugs industry. The stock has a beta of 0.27 and a short float of 12.8% with 9.42 days to cover. Shares are down 60.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Sequenom as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

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 Life Sciences Tools & Services industry. The net income has significantly decreased by 55.4% when compared to the same quarter one year ago, falling from -$6.08 million to -$9.44 million.
  • Net operating cash flow has significantly decreased to -$7.68 million or 84.74% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 60.23%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 60.00% 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.
  • SEQUENOM 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 reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, SEQUENOM INC continued to lose money by earning -$0.14 versus -$0.95 in the prior year. For the next year, the market is expecting a contraction of 107.1% in earnings (-$0.29 versus -$0.14).
  • SQNM, with its decline in revenue, underperformed when compared the industry average of 5.2%. Since the same quarter one year prior, revenues fell by 21.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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