The Internet industry as a whole closed the day down 2.0% versus the S&P 500, which was down 1.7%. Laggards within the Internet industry included

Liberty Interactive Corp Class B

(

LVNTB

), down 7.1%,

Rediff.com India

(

REDF

), down 13.0%,

BroadVision

(

BVSN

), down 5.0%,

Sify Technologies

(

SIFY

), down 4.0% and

Professional Diversity Network

(

IPDN

), down 21.3%.

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

Professional Diversity Network

(

IPDN

) is one of the companies that pushed the Internet industry lower today. Professional Diversity Network was down $0.17 (21.3%) to $0.61 on average volume. Throughout the day, 61,640 shares of Professional Diversity Network exchanged hands as compared to its average daily volume of 73,400 shares. The stock ranged in price between $0.61-$0.82 after having opened the day at $0.82 as compared to the previous trading day's close of $0.78.

Professional Diversity Network, Inc. operates online professional networking communities with career resources in the United States. Professional Diversity Network has a market cap of $12.0 million and is part of the technology sector. Shares are down 84.0% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates Professional Diversity Network a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates

Professional Diversity Network

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 IPDN 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 486.7% when compared to the same quarter one year ago, falling from -$0.26 million to -$1.54 million.
  • 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 Internet Software & Services industry and the overall market, PROFESSIONAL DIVERSITY NETWK's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to -$0.47 million or 34.00% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 79.27%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 200.00% 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.
  • PROFESSIONAL DIVERSITY NETWK 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 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, PROFESSIONAL DIVERSITY NETWK reported poor results of -$0.41 versus -$0.23 in the prior year. This year, the market expects an improvement in earnings (-$0.27 versus -$0.41).

You can view the full analysis from the report here:

Professional Diversity Network Ratings Report

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At the close,

Sify Technologies

(

SIFY

) was down $0.05 (4.0%) to $1.20 on average volume. Throughout the day, 41,528 shares of Sify Technologies exchanged hands as compared to its average daily volume of 44,300 shares. The stock ranged in price between $1.20-$1.27 after having opened the day at $1.22 as compared to the previous trading day's close of $1.25.

Sify Technologies Limited provides integrated information and communications technology solutions and services in India. Sify Technologies has a market cap of $226.7 million and is part of the technology sector. Shares are down 6.0% 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 6.7%. 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 36.72%, 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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Rediff.com India

(

REDF

) was another company that pushed the Internet industry lower today. Rediff.com India was down $0.20 (13.0%) to $1.34 on heavy volume. Throughout the day, 55,790 shares of Rediff.com India exchanged hands as compared to its average daily volume of 24,100 shares. The stock ranged in price between $1.32-$1.49 after having opened the day at $1.46 as compared to the previous trading day's close of $1.54.

Rediff.com India Limited provides online Internet based services in India and to the global Indian community. The company operates in two segments, India Online Business and US Publishing Business. Rediff.com India has a market cap of $45.0 million and is part of the technology sector. Shares are down 21.8% year-to-date as of the close of trading on Thursday.

TheStreet Ratings rates

Rediff.com India

as a

sell

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

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Highlights from TheStreet Ratings analysis on REDF go as follows:

  • The gross profit margin for REDIFF.COM INDIA LTD -ADR is currently lower than what is desirable, coming in at 28.57%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -53.19% is significantly below that of the industry average.
  • REDF'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 33.20%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.
  • REDIFF.COM INDIA LTD -ADR reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, REDIFF.COM INDIA LTD -ADR reported poor results of -$0.51 versus -$0.27 in the prior year.
  • REDF, with its decline in revenue, underperformed when compared the industry average of 6.7%. Since the same quarter one year prior, revenues fell by 19.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 49.7% when compared to the same quarter one year prior, rising from -$3.48 million to -$1.75 million.

You can view the full analysis from the report here:

Rediff.com India Ratings Report

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