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.

The Diversified Services industry as a whole closed the day down 1.6% versus the S&P 500, which was down 1.9%. Laggards within the Diversified Services industry included

Bioanalytical Systems

(

BASI

), down 2.8%,

VirtualScopics

(

VSCP

), down 2.5%,

Internet Patents

(

PTNT

), down 1.7%,

Lime Energy

(

LIME

), down 2.8% and

MGT Capital Investments

(

MGT

), down 3.9%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Lime Energy

(

LIME

) is one of the companies that pushed the Diversified Services industry lower today. Lime Energy was down $0.08 (2.8%) to $2.81 on light volume. Throughout the day, 4,938 shares of Lime Energy exchanged hands as compared to its average daily volume of 14,500 shares. The stock ranged in price between $2.77-$3.03 after having opened the day at $3.03 as compared to the previous trading day's close of $2.89.

Lime Energy Co. is engaged in designing and implementing energy efficiency programs for utilities in the United States. Lime Energy has a market cap of $11.0 million and is part of the services sector. Shares are unchanged year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

Lime Energy

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and poor profit margins.

Highlights from TheStreet Ratings analysis on LIME go as follows:

  • LIME has underperformed the S&P 500 Index, declining 19.51% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The gross profit margin for LIME ENERGY CO is currently lower than what is desirable, coming in at 32.26%. Regardless of LIME's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.57% trails the industry average.
  • 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 Electrical Equipment industry and the overall market, LIME ENERGY CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • LIME's debt-to-equity ratio is very low at 0.12 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that LIME's debt-to-equity ratio is low, the quick ratio, which is currently 0.55, displays a potential problem in covering short-term cash needs.
  • Net operating cash flow has significantly increased by 97.22% to -$0.04 million when compared to the same quarter last year. In addition, LIME ENERGY CO has also vastly surpassed the industry average cash flow growth rate of -21.52%.

You can view the full analysis from the report here:

Lime Energy Ratings Report

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At the close,

VirtualScopics

(

VSCP

) was down $0.08 (2.5%) to $3.17 on light volume. Throughout the day, 2,034 shares of VirtualScopics exchanged hands as compared to its average daily volume of 3,700 shares. The stock ranged in price between $3.12-$3.28 after having opened the day at $3.28 as compared to the previous trading day's close of $3.25.

VirtualScopics, Inc. provides imaging solutions for the pharmaceutical, biotechnology, and medical device industries. VirtualScopics has a market cap of $9.5 million and is part of the services sector. Shares are up 2.5% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates VirtualScopics a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates

VirtualScopics

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on VSCP go as follows:

  • 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 Life Sciences Tools & Services industry. The net income has significantly decreased by 27.3% when compared to the same quarter one year ago, falling from -$0.75 million to -$0.96 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Life Sciences Tools & Services industry and the overall market, VIRTUALSCOPICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for VIRTUALSCOPICS INC is currently lower than what is desirable, coming in at 33.86%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -34.87% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$0.42 million or 200.00% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • In its most recent trading session, VSCP has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.

You can view the full analysis from the report here:

VirtualScopics 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.

Bioanalytical Systems

(

BASI

) was another company that pushed the Diversified Services industry lower today. Bioanalytical Systems was down $0.06 (2.8%) to $2.06 on light volume. Throughout the day, 2,421 shares of Bioanalytical Systems exchanged hands as compared to its average daily volume of 5,400 shares. The stock ranged in price between $2.06-$2.19 after having opened the day at $2.18 as compared to the previous trading day's close of $2.12.

Bioanalytical Systems, Inc. provides drug discovery and development services, and analytical instruments for pharmaceutical, biotechnology, academic, and government organizations in North America, the Pacific Rim, Europe, and internationally. Bioanalytical Systems has a market cap of $17.6 million and is part of the services sector. Shares are unchanged year-to-date as of the close of trading on Friday.

TheStreet Ratings rates

Bioanalytical Systems

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on BASI go as follows:

  • BIOANALYTICAL SYSTEMS INC 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. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, BIOANALYTICAL SYSTEMS INC swung to a loss, reporting -$0.15 versus $0.09 in the prior year.
  • 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 Life Sciences Tools & Services industry. The net income has significantly decreased by 260.3% when compared to the same quarter one year ago, falling from $0.25 million to -$0.40 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Life Sciences Tools & Services industry and the overall market, BIOANALYTICAL SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for BIOANALYTICAL SYSTEMS INC is currently lower than what is desirable, coming in at 34.63%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -6.29% is significantly below that of the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 31.70%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 266.66% 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.

You can view the full analysis from the report here:

Bioanalytical Systems 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.