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 Technology sector as a whole closed the day down 0.8% versus the S&P 500, which was down 0.5%. Laggards within the Technology sector included

LookSmart

(

LOOK

), down 3.6%,

Selectica

(

SLTC

), down 4.5%,

Ambient

(

AMBT

), down 1.5%,

Nortech Systems

(

NSYS

), down 2.3% and

Electro-Sensors

(

ELSE

), down 4.5%.

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

Ambient

(

AMBT

) is one of the companies that pushed the Technology sector lower today. Ambient was down $0.01 (1.5%) to $0.65 on average volume. Throughout the day, 30,658 shares of Ambient exchanged hands as compared to its average daily volume of 35,400 shares. The stock ranged in price between $0.65-$0.76 after having opened the day at $0.68 as compared to the previous trading day's close of $0.66.

Ambient Corporation designs, develops, and sells communications and applications platform for utilities and other grid managers. Ambient has a market cap of $11.5 million and is part of the telecommunications industry. Shares are down 75.1% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates

Ambient

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, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on AMBT go as follows:

  • AMBIENT CORP's earnings per share declined by 33.3% 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. During the past fiscal year, AMBIENT CORP swung to a loss, reporting -$0.33 versus $0.25 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 Communications Equipment industry. The net income has significantly decreased by 37.7% when compared to the same quarter one year ago, falling from -$2.44 million to -$3.36 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 Communications Equipment industry and the overall market, AMBIENT CORP'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 -$2.01 million or 80.48% 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 60.81%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 33.33% 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.

TheStreet Recommends

You can view the full analysis from the report here:

Ambient Ratings Report

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At the close,

Selectica

(

SLTC

) was down $0.28 (4.5%) to $5.87 on heavy volume. Throughout the day, 24,040 shares of Selectica exchanged hands as compared to its average daily volume of 3,500 shares. The stock ranged in price between $5.87-$6.18 after having opened the day at $6.10 as compared to the previous trading day's close of $6.15.

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 $29.0 million and is part of the telecommunications industry. Shares are down 4.1% year-to-date as of the close of trading on Monday. 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, disappointing return on equity, generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

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 100.8% when compared to the same quarter one year ago, falling from -$1.06 million to -$2.12 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 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.
  • The debt-to-equity ratio is very high at 5.04 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, SLTC's quick ratio is somewhat strong at 1.04, 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 26.83%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 48.64% 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.
  • SELECTICA INC's earnings per share declined by 48.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, SELECTICA INC continued to lose money by earning -$1.67 versus -$2.25 in the prior year. For the next year, the market is expecting a contraction of 9.0% in earnings (-$1.82 versus -$1.67).

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.

LookSmart

(

LOOK

) was another company that pushed the Technology sector lower today. LookSmart was down $0.06 (3.6%) to $1.70 on light volume. Throughout the day, 500 shares of LookSmart exchanged hands as compared to its average daily volume of 4,400 shares. The stock ranged in price between $1.70-$1.70 after having opened the day at $1.70 as compared to the previous trading day's close of $1.76.

LookSmart, Ltd. provides search and display advertising network solutions in the United States, Europe, the Middle East, and Africa. LookSmart has a market cap of $10.2 million and is part of the telecommunications industry. Shares are down 14.1% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates

LookSmart

as a

sell

. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on LOOK go as follows:

  • LOOK has underperformed the S&P 500 Index, declining 7.67% 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, LOOKSMART LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • LOOK, with its very weak revenue results, has greatly underperformed against the industry average of 21.3%. Since the same quarter one year prior, revenues plummeted by 64.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Net operating cash flow has slightly increased to -$1.26 million or 6.52% when compared to the same quarter last year. Despite an increase in cash flow, LOOKSMART LTD's cash flow growth rate is still lower than the industry average growth rate of 23.29%.
  • The gross profit margin for LOOKSMART LTD is rather high; currently it is at 55.73%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -129.71% is in-line with the industry average.

You can view the full analysis from the report here:

LookSmart 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.