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

  • RPTP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.4 million.
  • RPTP has traded 89,180 shares today.
  • RPTP is trading at 5.12 times the normal volume for the stock at this time of day.
  • RPTP is trading at a new high 4.14% 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 RPTP:

Raptor Pharmaceutical Corp., a biopharmaceutical company, focuses on developing and commercializing transformative treatments for people affected by rare and debilitating diseases. Currently there are 3 analysts that rate Raptor Pharmaceutical a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Raptor Pharmaceutical has been 563,200 shares per day over the past 30 days. Raptor has a market cap of $505.0 million and is part of the health care sector and drugs industry. The stock has a beta of 1.47 and a short float of 8.4% with 14.23 days to cover. Shares are up 13.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Raptor Pharmaceutical as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow, feeble growth in its earnings per share, generally disappointing historical performance in the stock itself and generally high debt management risk.

Highlights from the ratings report include:
  • 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 Biotechnology industry. The net income has significantly decreased by 111.3% when compared to the same quarter one year ago, falling from -$19.68 million to -$41.59 million.
  • Net operating cash flow has decreased to -$21.93 million or 48.75% 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.
  • RAPTOR PHARMACEUTICAL CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Stable earnings per share over the past year indicate the company has managed its earnings and share float. We anticipate this stability to falter in the coming year and, in turn, the company to deliver lower earnings per share than prior full year. During the past fiscal year, RAPTOR PHARMACEUTICAL CORP's EPS of -$0.83 remained unchanged from the prior years' EPS of -$0.83. For the next year, the market is expecting a contraction of 21.1% in earnings (-$1.01 versus -$0.83).
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 57.99%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 75.00% compared to the year-earlier 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.
  • The debt-to-equity ratio of 1.33 is relatively high when compared with the industry average, suggesting a need for better debt level management. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 3.83, which shows the ability to cover short-term cash needs.

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