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

  • PDLI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.6 million.
  • PDLI has traded 936,215 shares today.
  • PDLI is trading at 2.45 times the normal volume for the stock at this time of day.
  • PDLI is trading at a new low 3.22% 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 PDLI:

PDL BioPharma, Inc. manages a portfolio of patents and royalty assets in the United States and Europe. The company is involved in the humanization of monoclonal antibodies and the discovery of a new generation of targeted treatments for cancer and immunologic diseases. It offers Queen et al. The stock currently has a dividend yield of 16%. PDLI has a PE ratio of 2. Currently there are no analysts that rate PDL BioPharma a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for PDL BioPharma has been 3.8 million shares per day over the past 30 days. PDL BioPharma has a market cap of $611.8 million and is part of the health care sector and drugs industry. The stock has a beta of 0.50 and a short float of 23% with 14.61 days to cover. Shares are down 53.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates PDL BioPharma as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.56, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 3.15, which clearly demonstrates the ability to cover short-term cash needs.
  • PDL BIOPHARMA INC's earnings per share declined by 31.1% 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, PDL BIOPHARMA INC increased its bottom line by earning $1.89 versus $1.73 in the prior year. This year, the market expects an improvement in earnings ($1.95 versus $1.89).
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Biotechnology industry average. The net income has significantly decreased by 32.0% when compared to the same quarter one year ago, falling from $102.24 million to $69.46 million.
  • Net operating cash flow has declined marginally to $75.49 million or 2.07% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, PDL BIOPHARMA INC has marginally lower results.

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