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 $9.6 million.
  • PDLI has traded 261,763 shares today.
  • PDLI is trading at 2.54 times the normal volume for the stock at this time of day.
  • PDLI is trading at a new low 4.01% 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 6.1%. 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 2.5 million shares per day over the past 30 days. PDL BioPharma has a market cap of $542.1 million and is part of the health care sector and drugs industry. The stock has a beta of 0.66 and a short float of 17.9% with 6.23 days to cover. Shares are down 8.5% year-to-date as of the close of trading on Friday.

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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 increase in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 82.6% when compared to the same quarter one year prior, rising from $55.07 million to $100.57 million.
  • The current debt-to-equity ratio, 0.37, is low and is below the industry average, implying that there has been successful management of debt levels.
  • Net operating cash flow has slightly increased to $70.08 million or 1.50% when compared to the same quarter last year. Despite an increase in cash flow, PDL BIOPHARMA INC's cash flow growth rate is still lower than the industry average growth rate of 27.36%.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, PDL BIOPHARMA INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • PDLI's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 52.18%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.

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