NEW YORK (TheStreet) -- YOU On Demand (YOD) was rising 19.74% to $3.08 on Thursday after the Chinese video on demand service announced that it had expanded its partnership with Disney to offer more Disney feature films through its service.
The expansion includes Disney titles such as Alice in Wonderland and Pirates of the Caribbean, along with Marvel titles through its Subscription Video on Demand (SVOD) service. Newer titles such as Thor: The Dark World and Saving Mr. Banks will also be available through the Transactional Video on Demand (TVOD) service.
"We are very proud to announce our expanded partnership with Disney as we continue to bring the best in entertainment to mobile users in China," said Chairman Shane McMahon in the company's statement. "Disney films define quality family entertainment and we're thrilled that YOU On Demand will be showcasing Disney content to the world's largest media audience. This partnership marks the next step in YOU On Demand's commitment to provide rich and diverse content to customers anytime and anywhere on a wide variety of platforms, including mobile, digital cable, IPTV, Over-the-Top and online."
TheStreet Ratings team rates YOU ON DEMAND HOLDINGS INC as a "sell" with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate YOU ON DEMAND HOLDINGS INC (YOD) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been weak operating cash flow."Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Net operating cash flow has declined marginally to -$2.77 million or 1.20% 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 company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Media industry and the overall market, YOU ON DEMAND HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that YOD's debt-to-equity ratio is low, the quick ratio, which is currently 0.65, displays a potential problem in covering short-term cash needs.
- Investors have driven up the company's shares by 152.63% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the future course of this stock, we feel that the risks involved in investing in YOD do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
- YOU ON DEMAND HOLDINGS INC has improved earnings per share by 21.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, YOU ON DEMAND HOLDINGS INC continued to lose money by earning -$1.24 versus -$1.50 in the prior year. This year, the market expects an improvement in earnings (-$0.72 versus -$1.24).
- You can view the full analysis from the report here: YOD Ratings Report
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Check Out Our Best Services for Investors
Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.