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 Internet industry as a whole closed the day up 0.9% versus the S&P 500, which was down 0.2%. Laggards within the Internet industry included

ChinaNet Online Holdings

(

CNET

), down 9.3%,

Selectica

(

SLTC

), down 1.5%,

CafePress

(

PRSS

), down 1.9%,

Local

(

LOCM

), down 2.5% and

Points International

(

PCOM

), down 3.1%.

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

CafePress

(

PRSS

) is one of the companies that pushed the Internet industry lower today. CafePress was down $0.10 (1.9%) to $5.20 on light volume. Throughout the day, 4,128 shares of CafePress exchanged hands as compared to its average daily volume of 17,600 shares. The stock ranged in price between $5.20-$5.35 after having opened the day at $5.26 as compared to the previous trading day's close of $5.30.

CafePress Inc. operates an e-commerce platform enabling customers to shop, create, and sell various customized and personalized products worldwide. CafePress has a market cap of $90.8 million and is part of the technology sector. Shares are down 16.3% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate CafePress a buy, no analysts rate it a sell, and 5 rate it a hold.

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

TheStreet Ratings rates

CafePress

as a

sell

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

Highlights from TheStreet Ratings analysis on PRSS 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 Internet & Catalog Retail industry. The net income has significantly decreased by 30.9% when compared to the same quarter one year ago, falling from -$3.98 million to -$5.22 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 Internet & Catalog Retail industry and the overall market, CAFEPRESS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has declined marginally to -$13.32 million or 8.65% 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.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 26.39%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 30.43% 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.
  • CAFEPRESS INC's earnings per share declined by 30.4% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, CAFEPRESS INC reported poor results of -$0.78 versus -$0.01 in the prior year. This year, the market expects an improvement in earnings (-$0.05 versus -$0.78).

TheStreet Recommends

You can view the full analysis from the report here:

CafePress 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.

At the close,

Selectica

(

SLTC

) was down $0.09 (1.5%) to $5.87 on light volume. Throughout the day, 1,206 shares of Selectica exchanged hands as compared to its average daily volume of 10,300 shares. The stock ranged in price between $5.87-$5.97 after having opened the day at $5.91 as compared to the previous trading day's close of $5.96.

Selectica, Inc. provides cloud-based software solutions for companies in the United States, Canada, India, New Zealand, Switzerland, and the United Kingdom. Selectica has a market cap of $33.0 million and is part of the technology sector. Shares are down 4.8% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates Selectica a buy, no analysts rate it a sell, and none rate it a hold.

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

TheStreet Ratings rates

Selectica

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, poor profit margins, weak operating cash flow, generally high debt management risk and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on SLTC 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 Internet Software & Services industry. The net income has significantly decreased by 51.4% when compared to the same quarter one year ago, falling from -$2.09 million to -$3.17 million.
  • The gross profit margin for SELECTICA INC is currently lower than what is desirable, coming in at 34.43%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -89.46% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$1.66 million or 168.06% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The debt-to-equity ratio of 1.03 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, SLTC's quick ratio is somewhat strong at 1.38, demonstrating the ability to handle short-term liquidity needs.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 29.89%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 54.79% 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:

Selectica 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.

ChinaNet Online Holdings

(

CNET

) was another company that pushed the Internet industry lower today. ChinaNet Online Holdings was down $0.07 (9.3%) to $0.68 on average volume. Throughout the day, 51,908 shares of ChinaNet Online Holdings exchanged hands as compared to its average daily volume of 39,100 shares. The stock ranged in price between $0.64-$0.70 after having opened the day at $0.70 as compared to the previous trading day's close of $0.75.

ChinaNet Online Holdings, Inc., through its subsidiaries, provides business-to-businesses Internet services for small and medium enterprises (SMEs) sales networks in the People's Republic of China. ChinaNet Online Holdings has a market cap of $17.2 million and is part of the technology sector. Shares are down 8.3% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates

ChinaNet Online Holdings

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 and weak operating cash flow.

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 CNET go as follows:

  • CHINANET ONLINE HOLDINGS 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, CHINANET ONLINE HOLDINGS swung to a loss, reporting -$0.01 versus $0.13 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 Media industry. The net income has significantly decreased by 248.9% when compared to the same quarter one year ago, falling from $1.25 million to -$1.86 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Media industry and the overall market, CHINANET ONLINE HOLDINGS's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$0.06 million or 102.18% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 49.93% is the gross profit margin for CHINANET ONLINE HOLDINGS which we consider to be strong. Regardless of CNET's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CNET's net profit margin of -27.02% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here:

ChinaNet Online Holdings 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.