Why PDL BioPharma Inc. (NASDAQ:PDLI) Is Termed As Dead Cat Bounce Stock?


Dallas, Texas 02/07/2014 (FINANCIALSTRENDS) – The famous trading and investment form Trade Idea LLC has termed PDL BioPharma Inc.(NASDAQ:PDLI) as Dead cat bounce stock and have given many different reasons for such overview. PDL Biopharma has got an average dollar volume of $23.9 million but recently only 99,809 shares were traded and it went down by almost 11 percent in a single day.

As discussed above PDL Biopharma’s average volume has been 2.5 million shares per day over the past 30 days. The current market capitalization of PDL Biopharma is $1.2 billion and is part of the health care sector and drugs industry. PDL Biopharma stock has got a beta of 0.61 and a short float of 24.6% with 9.84 days to cover. The PDL Biopharma Shares are up 5.5% year-to-date at the close of trading on Tuesday. Company’s revenue also exceeded that of the both industry average and the S&P 500 which is considered as an average of 11.1%.

An Overview of the company

PDL BioPharma Inc.(NASDAQ:PDLI) also engages in intellectual property asset management and patent portfolio and related assets investment activities. The current dividend yield of this stock is around 6.7% and is available on the P/E multiple of 5.3. There are a total of 3 investment trading firms who have maintained a hold rating on this stock.

However there is no trading and investment firm that has given buy or sell rating for this stock. As per the recent financial reports the company has managed to improve its EPS that is earnings per share by 12.5% and this is considered as clear cut demonstration of positive EPS as compared to last 2 years. Company’s net operating cash has also improved to $45.83 million. All these positive factors are taken as quite well by the investors and many of them are quite bullish about investing in PDL biopharma.