Trade-Ideas LLC identified

Altisource Portfolio Solutions

(

ASPS

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Altisource Portfolio Solutions as such a stock due to the following factors:

  • ASPS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.4 million.
  • ASPS has traded 318,898 shares today.
  • ASPS is up 3.4% today.
  • ASPS was down 6% yesterday.

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More details on ASPS:

Altisource Portfolio Solutions S.A. operates as a marketplace and transaction solutions provider for the real estate, mortgage, and consumer debt industries in the United States. ASPS has a PE ratio of 12. Currently there are no analysts that rate Altisource Portfolio Solutions a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Altisource Portfolio Solutions has been 857,500 shares per day over the past 30 days. Altisource has a market cap of $448.6 million and is part of the services sector and diversified services industry. The stock has a beta of 1.66 and a short float of 48.4% with 6.30 days to cover. Shares are down 19.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Altisource Portfolio Solutions as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • Compared to its closing price of one year ago, ASPS's share price has jumped by 64.06%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • ASPS's revenue growth trails the industry average of 15.5%. Since the same quarter one year prior, revenues slightly increased by 5.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The debt-to-equity ratio is very high at 10.48 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, ASPS has managed to keep a strong quick ratio of 2.20, which demonstrates the ability to cover short-term cash needs.
  • 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 Real Estate Management & Development industry. The net income has significantly decreased by 2837.8% when compared to the same quarter one year ago, falling from -$1.54 million to -$45.10 million.

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