Trade-Ideas LLC identified

Gigamon

(

GIMO

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Gigamon as such a stock due to the following factors:

  • GIMO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $33.2 million.
  • GIMO has traded 2,345 shares today.
  • GIMO is trading at a new lifetime high.

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More details on GIMO:

Gigamon Inc. designs, develops, and sells products and services that provide customers with visibility and control of network traffic for enterprises and services providers in the United States, rest of Americas, Europe, the Middle East, Africa, and the Asia Pacific. GIMO has a PE ratio of 147. Currently there are 5 analysts that rate Gigamon a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Gigamon has been 622,300 shares per day over the past 30 days. Gigamon has a market cap of $1.5 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.71 and a short float of 5.7% with 2.62 days to cover. Shares are up 58% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Gigamon as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 0.7%. Since the same quarter one year prior, revenues rose by 43.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • GIMO has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.03, which clearly demonstrates the ability to cover short-term cash needs.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
  • 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. When compared to other companies in the Software industry and the overall market, GIGAMON INC's return on equity is below that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$3.83 million or 124.25% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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