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 2.0% versus the S&P 500, which was down 1.8%. Laggards within the Technology sector included

Blonder Tongue Laboratories

(

BDR

), down 2.2%,

Maxcom Telecomunicaciones SAB de CV

(

MXT

), down 4.0%,

Qualstar

(

QBAK

), down 2.2%,

Trio-Tech International

(

TRT

), down 6.9% and

Electro-Sensors

(

ELSE

), down 4.5%.

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

Telekomunikasi Indonesia (Persero) Tbk

(

TLK

) is one of the companies that pushed the Technology sector lower today. Telekomunikasi Indonesia (Persero) Tbk was down $1.28 (2.8%) to $44.94 on average volume. Throughout the day, 191,118 shares of Telekomunikasi Indonesia (Persero) Tbk exchanged hands as compared to its average daily volume of 245,700 shares. The stock ranged in price between $44.77-$45.78 after having opened the day at $45.78 as compared to the previous trading day's close of $46.22.

PT Telekomunikasi Indonesia, Tbk provides network and telecommunication services to individual and home customers, companies, and institutions in worldwide. It operates through four segments: Personal, Home, Corporate, and Others. Telekomunikasi Indonesia (Persero) Tbk has a market cap of $117.0 billion and is part of the telecommunications industry. Shares are up 28.9% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates

Telekomunikasi Indonesia (Persero) Tbk

as a

buy

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from TheStreet Ratings analysis on TLK go as follows:

  • Net operating cash flow has increased to $756.44 million or 14.59% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -14.28%.
  • The current debt-to-equity ratio, 0.39, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.81 is somewhat weak and could be cause for future problems.
  • The gross profit margin for TELEKOMUNIKASI INDONESIA is rather high; currently it is at 58.36%. Regardless of TLK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TLK's net profit margin of 16.85% compares favorably to the industry average.
  • TLK, with its decline in revenue, underperformed when compared the industry average of 3.5%. Since the same quarter one year prior, revenues fell by 14.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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 Diversified Telecommunication Services industry and the overall market on the basis of return on equity, TELEKOMUNIKASI INDONESIA has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

You can view the full analysis from the report here:

Telekomunikasi Indonesia (Persero) Tbk Ratings Report

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At the close,

Qualstar

(

QBAK

) was down $0.03 (2.2%) to $1.32 on heavy volume. Throughout the day, 22,595 shares of Qualstar exchanged hands as compared to its average daily volume of 10,600 shares. The stock ranged in price between $1.23-$1.38 after having opened the day at $1.37 as compared to the previous trading day's close of $1.35.

Qualstar Corporation designs, develops, manufactures, and sells power supplies and data storage systems worldwide. The company operates in two segments, Power Supplies and Tape Libraries. Qualstar has a market cap of $15.9 million and is part of the telecommunications industry. Shares are up 19.5% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates

Qualstar

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on QBAK go as follows:

  • 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 Computers & Peripherals industry and the overall market, QUALSTAR 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 -$2.61 million or 191.49% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • QBAK has underperformed the S&P 500 Index, declining 10.60% 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.
  • QUALSTAR CORP has improved earnings per share by 33.3% 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, QUALSTAR CORP reported poor results of -$0.85 versus -$0.35 in the prior year.
  • The revenue fell significantly faster than the industry average of 8.6%. Since the same quarter one year prior, revenues fell by 24.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

You can view the full analysis from the report here:

Qualstar Ratings Report

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Maxcom Telecomunicaciones SAB de CV

(

MXT

) was another company that pushed the Technology sector lower today. Maxcom Telecomunicaciones SAB de CV was down $0.06 (4.0%) to $1.50 on light volume. Throughout the day, 560 shares of Maxcom Telecomunicaciones SAB de CV exchanged hands as compared to its average daily volume of 7,500 shares. The stock ranged in price between $1.50-$1.52 after having opened the day at $1.50 as compared to the previous trading day's close of $1.56.

Maxcom Telecomunicaciones, S.A.B. de C.V., an integrated telecommunication services operator, provides voice and data services to residential and small and medium-sized business customers in Mexico. Maxcom Telecomunicaciones SAB de CV has a market cap of $232.9 million and is part of the telecommunications industry. Shares are down 4.3% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Maxcom Telecomunicaciones SAB de CV a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates

Maxcom Telecomunicaciones SAB de CV

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 generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on MXT go as follows:

  • MAXCOM TELECOMUNICACIONES SA 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. During the past fiscal year, MAXCOM TELECOMUNICACIONES SA reported poor results of -$0.57 versus -$0.11 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 Diversified Telecommunication Services industry. The net income has significantly decreased by 134.3% when compared to the same quarter one year ago, falling from $4.19 million to -$1.44 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 Diversified Telecommunication Services industry and the overall market, MAXCOM TELECOMUNICACIONES SA's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 38.12%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 133.33% 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.
  • 49.71% is the gross profit margin for MAXCOM TELECOMUNICACIONES SA which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, MXT's net profit margin of -2.88% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here:

Maxcom Telecomunicaciones SAB de CV 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.