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

  • CYTR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.9 million.
  • CYTR has traded 3.3 million shares today.
  • CYTR is trading at 12.89 times the normal volume for the stock at this time of day.
  • CYTR is trading at a new low 3.47% 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 CYTR:

CytRx Corporation operates as a biopharmaceutical research and development company specializing in oncology. Currently there are 2 analysts that rate CytRx a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for CytRx has been 896,100 shares per day over the past 30 days. CytRx has a market cap of $150.9 million and is part of the health care sector and drugs industry. The stock has a beta of 2.37 and a short float of 21.4% with 2.82 days to cover. Shares are down 61.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates CytRx as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and poor profit margins.

Highlights from the ratings report include:
  • The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Net operating cash flow has declined marginally to -$13.09 million or 3.68% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The gross profit margin for CYTRX CORP is currently extremely low, coming in at 0.00%. CYTR has continued with the weak profit margin when compared to the same quarter of last year.
  • CYTR'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 40.96%, 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.
  • CYTRX CORP has improved earnings per share by 38.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CYTRX CORP reported poor results of -$0.97 versus -$0.54 in the prior year. This year, the market expects an improvement in earnings (-$0.78 versus -$0.97).

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