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

  • SCLN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.5 million.
  • SCLN has traded 189,221 shares today.
  • SCLN is trading at 2.81 times the normal volume for the stock at this time of day.
  • SCLN is trading at a new low 3.07% 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.

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

More details on SCLN:

SciClone Pharmaceuticals, Inc., a specialty pharmaceutical company, provides therapies for oncology, infectious diseases, and cardiovascular disorders in the People's Republic of China, the United States, and Hong Kong. SCLN has a PE ratio of 23.

The average volume for SciClone Pharmaceuticals has been 576,900 shares per day over the past 30 days. SciClone has a market cap of $627.9 million and is part of the health care sector and drugs industry. The stock has a beta of 1.82 and a short float of 7.6% with 8.33 days to cover. Shares are up 38.1% year-to-date as of the close of trading on Friday.

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 SciClone Pharmaceuticals as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, expanding profit margins and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 4.7%. Since the same quarter one year prior, revenues slightly increased by 8.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to its closing price of one year ago, SCLN's share price has jumped by 32.00%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SCLN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The gross profit margin for SCICLONE PHARMACEUTICALS INC is currently very high, coming in at 84.07%. Regardless of SCLN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SCLN's net profit margin of 21.54% compares favorably to the industry average.
  • SCICLONE PHARMACEUTICALS INC's earnings per share declined by 11.8% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, SCICLONE PHARMACEUTICALS INC increased its bottom line by earning $0.56 versus $0.48 in the prior year.

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.