Trade-Ideas LLC identified

Jumei International

(

JMEI

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

  • JMEI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.5 million.
  • JMEI has traded 72,358 shares today.
  • JMEI is up 3.7% today.
  • JMEI was down 7.7% yesterday.

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More details on JMEI:

Jumei International Holding Limited operates as an online retailer of beauty products in the People's Republic of China. The company offers beauty products, such as cosmetics, skin care, cosmetic applicators, fragrance, and body care products; and beauty products for men, and baby and children. JMEI has a PE ratio of 17. Currently there are 2 analysts that rate Jumei International a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Recommends

The average volume for Jumei International has been 2.3 million shares per day over the past 30 days. Jumei International has a market cap of $1.1 billion and is part of the services sector and specialty retail industry. Shares are down 15.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Jumei International 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, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • JUMEI INTL HOLDING LTD -ADR 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. For the next year, the market is expecting a contraction of 52.0% in earnings ($0.22 versus $0.45).
  • 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 Internet & Catalog Retail industry. The net income has significantly decreased by 170.1% when compared to the same quarter one year ago, falling from $19.50 million to -$13.68 million.
  • The gross profit margin for JUMEI INTL HOLDING LTD -ADR is currently lower than what is desirable, coming in at 26.17%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -4.47% trails that of the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 43.30%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 169.23% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • When compared to other companies in the Internet & Catalog Retail industry and the overall market, JUMEI INTL HOLDING LTD -ADR's return on equity is below that of both the industry average and the S&P 500.

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