The Internet industry as a whole closed the day down 0.5% versus the S&P 500, which was down 0.3%. Laggards within the Internet industry included

Innodata

(

INOD

), down 2.3%,

Sify Technologies

(

SIFY

), down 2.3%,

Selectica

(

SLTC

), down 5.4%,

Synacor

(

SYNC

), down 3.4% and

Professional Diversity Network

(

IPDN

), down 18.9%.

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

Selectica

(

SLTC

) is one of the companies that pushed the Internet industry lower today. Selectica was down $0.26 (5.4%) to $4.56 on light volume. Throughout the day, 8,865 shares of Selectica exchanged hands as compared to its average daily volume of 16,500 shares. The stock ranged in price between $4.55-$4.69 after having opened the day at $4.64 as compared to the previous trading day's close of $4.82.

Selectica, Inc. provides enterprise contract management, supply management, and configuration solutions. Selectica has a market cap of $43.8 million and is part of the technology sector. Shares are down 7.0% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates Selectica a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates

Selectica

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow 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 34.2% when compared to the same quarter one year ago, falling from -$3.17 million to -$4.25 million.
  • Net operating cash flow has significantly decreased to -$3.45 million or 107.95% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • SLTC has underperformed the S&P 500 Index, declining 24.37% 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 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 Internet Software & Services industry and the overall market, SELECTICA INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • SLTC's debt-to-equity ratio of 0.74 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.91 is weak.

You can view the full analysis from the report here:

Selectica Ratings Report

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At the close,

Sify Technologies

(

SIFY

) was down $0.03 (2.3%) to $1.29 on heavy volume. Throughout the day, 106,632 shares of Sify Technologies exchanged hands as compared to its average daily volume of 45,200 shares. The stock ranged in price between $1.25-$1.34 after having opened the day at $1.30 as compared to the previous trading day's close of $1.32.

Sify Technologies Limited provides integrated information and communications technology solutions and services in India. Sify Technologies has a market cap of $237.4 million and is part of the technology sector. Shares are down 0.8% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

Sify Technologies

as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and unimpressive growth in net income.

Highlights from TheStreet Ratings analysis on SIFY go as follows:

  • SIFY's revenue growth has slightly outpaced the industry average of 6.2%. Since the same quarter one year prior, revenues slightly increased by 8.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • 38.60% is the gross profit margin for SIFY TECHNOLOGIES LTD -ADR which we consider to be strong. Regardless of SIFY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SIFY's net profit margin of 2.49% is significantly lower than the industry average.
  • SIFY TECHNOLOGIES LTD -ADR reported flat earnings per share in the most recent quarter. Stable Earnings per share over the past year indicate the company has sound management over its earnings and share float. During the past fiscal year, SIFY TECHNOLOGIES LTD -ADR's EPS of $0.04 remained unchanged from the prior years' EPS of $0.04.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Internet Software & Services industry average. The net income has significantly decreased by 28.9% when compared to the same quarter one year ago, falling from $1.88 million to $1.34 million.
  • SIFY's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 33.66%, which is also worse than the performance of the S&P 500 Index. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, SIFY is still more expensive than most of the other companies in its industry.

You can view the full analysis from the report here:

Sify Technologies Ratings Report

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Innodata

(

INOD

) was another company that pushed the Internet industry lower today. Innodata was down $0.06 (2.3%) to $2.53 on average volume. Throughout the day, 10,435 shares of Innodata exchanged hands as compared to its average daily volume of 11,300 shares. The stock ranged in price between $2.53-$2.62 after having opened the day at $2.55 as compared to the previous trading day's close of $2.59.

Innodata Inc. provides business process, information technology, and professional services that are focused on digital enablement in the United States and internationally. Innodata has a market cap of $65.6 million and is part of the technology sector. Shares are down 11.3% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Innodata a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates

Innodata

as a

sell

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

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Highlights from TheStreet Ratings analysis on INOD 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 IT Services industry. The net income has significantly decreased by 1073.5% when compared to the same quarter one year ago, falling from $0.19 million to -$1.84 million.
  • The gross profit margin for INNODATA INC is rather low; currently it is at 24.66%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -13.33% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to $2.06 million or 52.53% 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 share price of INNODATA INC has not done very well: it is down 13.58% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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 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 IT Services industry and the overall market, INNODATA INC's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here:

Innodata Ratings Report

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