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

  • CSII has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.9 million.
  • CSII has traded 2.4 million shares today.
  • CSII is trading at 86.02 times the normal volume for the stock at this time of day.
  • CSII is trading at a new low 32.02% 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 CSII:

Cardiovascular Systems, Inc., a medical technology company, develops, manufactures, and markets devices to treat vascular diseases in the United States. Currently there are 5 analysts that rate Cardiovascular Systems a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Cardiovascular Systems has been 392,700 shares per day over the past 30 days. Cardiovascular Systems has a market cap of $406.6 million and is part of the health care sector and health services industry. The stock has a beta of 2.15 and a short float of 9.2% with 6.25 days to cover. Shares are down 17.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Cardiovascular Systems as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, 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 against the S&P 500 and did not exceed that of the Health Care Equipment & Supplies industry. The net income has significantly decreased by 61.2% when compared to the same quarter one year ago, falling from -$8.22 million to -$13.26 million.
  • 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. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, CARDIOVASCULAR SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has declined marginally to -$4.84 million or 8.09% when compared to the same quarter last year. Despite a decrease in cash flow of 8.09%, CARDIOVASCULAR SYSTEMS INC is in line with the industry average cash flow growth rate of -16.70%.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 52.83%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 57.69% 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.
  • CARDIOVASCULAR SYSTEMS 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, CARDIOVASCULAR SYSTEMS INC continued to lose money by earning -$1.04 versus -$1.24 in the prior year. For the next year, the market is expecting a contraction of 70.2% in earnings (-$1.77 versus -$1.04).

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