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.

Trade-Ideas LLC identified

Amkor Technology

(

AMKR

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

  • AMKR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $43.1 million.
  • AMKR has traded 2.5 million shares today.
  • AMKR is up 3% today.
  • AMKR was down 6.9% yesterday.

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More details on AMKR:

Amkor Technology, Inc. provides outsourced semiconductor packaging and test services in the United States and internationally. AMKR has a PE ratio of 22.4. Currently there are no analysts that rate Amkor Technology a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Amkor Technology has been 2.2 million shares per day over the past 30 days. Amkor Technology has a market cap of $2.8 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.87 and a short float of 7.8% with 2.69 days to cover. Shares are up 77% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Amkor Technology as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including poor profit margins and generally higher debt management risk.

Highlights from the ratings report include:

  • Powered by its strong earnings growth of 28.57% and other important driving factors, this stock has surged by 171.16% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.
  • AMKOR TECHNOLOGY INC has improved earnings per share by 28.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, AMKOR TECHNOLOGY INC increased its bottom line by earning $0.50 versus $0.22 in the prior year. This year, the market expects an improvement in earnings ($0.70 versus $0.50).
  • Currently the debt-to-equity ratio of 1.69 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Even though the debt-to-equity ratio is weak, AMKR's quick ratio is somewhat strong at 1.40, demonstrating the ability to handle short-term liquidity needs.
  • The gross profit margin for AMKOR TECHNOLOGY INC is currently lower than what is desirable, coming in at 32.88%. Regardless of AMKR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, AMKR's net profit margin of 2.96% is significantly lower than the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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