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 $6.2 million.
  • SCLN has traded 156,456 shares today.
  • SCLN is trading at 3.15 times the normal volume for the stock at this time of day.
  • SCLN is trading at a new low 3.01% 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 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 26.

The average volume for SciClone Pharmaceuticals has been 641,700 shares per day over the past 30 days. SciClone has a market cap of $733.2 million and is part of the health care sector and drugs industry. The stock has a beta of 1.84 and a short float of 6% with 6.81 days to cover. Shares are up 59.1% year-to-date as of the close of trading on Thursday.

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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, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, reasonable valuation levels and good cash flow from operations. 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:
  • SCLN's revenue growth has slightly outpaced the industry average of 1.0%. 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.
  • SCLN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 7.08, which clearly demonstrates the ability to cover short-term cash needs.
  • Compared to its closing price of one year ago, SCLN's share price has jumped by 54.07%, 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.
  • Net operating cash flow has slightly increased to $12.96 million or 5.39% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -8.14%.

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