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

  • AFFX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.6 million.
  • AFFX has traded 60,849 shares today.
  • AFFX is trading at 2.63 times the normal volume for the stock at this time of day.
  • AFFX is trading at a new high 3.01% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in AFFX with the Ticky from Trade-Ideas. See the FREE profile for AFFX NOW at Trade-Ideas

More details on AFFX:

Affymetrix, Inc. provides life science products and molecular diagnostic products that enable parallel analysis of biological systems at the gene, protein, and cell level primarily in the United States, Europe, Latin America, and Asia. AFFX has a PE ratio of 71. Currently there are 2 analysts that rate Affymetrix a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Affymetrix has been 550,000 shares per day over the past 30 days. Affymetrix has a market cap of $798.9 million and is part of the technology sector and electronics industry. The stock has a beta of 0.11 and a short float of 12.6% with 15.83 days to cover. Shares are up 1.3% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Affymetrix 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, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and a decline in the stock price during the past year.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.38, 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 2.61, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has increased to $23.12 million or 11.71% when compared to the same quarter last year. In addition, AFFYMETRIX INC has also modestly surpassed the industry average cash flow growth rate of 7.10%.
  • AFFYMETRIX 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. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AFFYMETRIX INC continued to lose money by earning -$0.07 versus -$0.27 in the prior year. This year, the market expects an improvement in earnings ($0.42 versus -$0.07).
  • After a year of stock price fluctuations, the net result is that AFFX'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. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • 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 323.8% when compared to the same quarter one year ago, falling from $2.38 million to -$5.34 million.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.