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
NEW YORK (
-- Cogo Group
) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and poor profit margins.
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Highlights from the ratings report include:
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- 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 Communications Equipment industry average. The net income has decreased by 4.7% when compared to the same quarter one year ago, dropping from $1.78 million to $1.70 million.
- The gross profit margin for COGO GROUP INC is currently extremely low, coming in at 6.58%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.90% significantly trails the industry average.
Cogo Group, Inc. provides customized module design solutions for the digital media, telecommunications equipment, and industrial business end-markets primarily in the People's Republic of China. Cogo Group has a market cap of $68.2 million and is part of the technology sector and electronics industry. Shares are down 47.1% year to date as of the close of trading on Tuesday.
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