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

  • FLML has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.9 million.
  • FLML has traded 99,414 shares today.
  • FLML is trading at 6.39 times the normal volume for the stock at this time of day.
  • FLML is trading at a new high 4.19% 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.

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More details on FLML:

Flamel Technologies SA, a specialty pharmaceutical company, develops and commercializes pharmaceutical products based on its proprietary polymer based technology primarily in the United States, France, and Ireland. FLML has a PE ratio of 18. Currently there are 4 analysts that rate Flamel Technologies a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Flamel Technologies has been 301,100 shares per day over the past 30 days. Flamel has a market cap of $384.4 million and is part of the health care sector and drugs industry. Shares are down 23.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Flamel Technologies as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 0.8%. Since the same quarter one year prior, revenues rose by 10.7%. 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.
  • FLML's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.70, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for FLAMEL TECHNOLOGIES SA -ADR is currently very high, coming in at 88.53%. Regardless of FLML's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, FLML's net profit margin of -17.60% significantly underperformed when compared to the industry average.
  • 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 Pharmaceuticals industry. The net income has significantly decreased by 154.7% when compared to the same quarter one year ago, falling from $11.65 million to -$6.38 million.
  • Net operating cash flow has decreased to $22.50 million or 10.98% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, FLAMEL TECHNOLOGIES SA -ADR has marginally lower results.

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