Today's Dead Cat Bounce Stock: GSV Capital (GSVC)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified GSV Capital (GSVC) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified GSV Capital as such a stock due to the following factors:
- GSVC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.9 million.
- GSVC has traded 41,521 shares today.
- GSVC is up 3.4% today.
- GSVC was down 5.2% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in GSVC with the Ticky from Trade-Ideas. See the FREE profile for GSVC NOW at Trade-IdeasMore details on GSVC: GSV Capital Corp. is a BDC fund specializing in investments in emerging growth companies and venture-backed private companies. It may also invest in select publicly-traded equity securities of companies that otherwise meet its investment criteria. Currently there are 2 analysts that rate GSV Capital a buy, no analysts rate it a sell, and none rate it a hold.The average volume for GSV Capital has been 900,500 shares per day over the past 30 days. GSV has a market cap of $259.3 million and is part of the financial sector and financial services industry. Shares are up 59.2% year to date as of the close of trading on Tuesday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates GSV Capital as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and growth in earnings per share. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.Highlights from the ratings report include:
- Powered by its strong earnings growth of 152.94% and other important driving factors, this stock has surged by 78.01% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 164.2% when compared to the same quarter one year prior, rising from -$5.48 million to $3.52 million.
- GSV CAPITAL CORP reported significant earnings per share improvement 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, GSV CAPITAL CORP reported poor results of -$1.09 versus -$0.87 in the prior year. This year, the market expects an improvement in earnings (-$0.09 versus -$1.09).
- GSVC, with its very weak revenue results, has greatly underperformed against the industry average of 8.7%. Since the same quarter one year prior, revenues plummeted by 86.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Capital Markets industry and the overall market, GSV CAPITAL CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full GSV Capital Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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