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

LiveDeal

(

LIVE

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified LiveDeal as such a stock due to the following factors:

  • LIVE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.5 million.
  • LIVE has traded 485,022 shares today.
  • LIVE is trading at 8.75 times the normal volume for the stock at this time of day.
  • LIVE is trading at a new low 8.16% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on LIVE:

LiveDeal, Inc., together with its subsidiaries, provides customer acquisition and online listing services for small and medium-sized local businesses in the United States. Currently there are no analysts that rate LiveDeal a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for LiveDeal has been 382,700 shares per day over the past 30 days. LiveDeal has a market cap of $37.5 million and is part of the technology sector and internet industry. The stock has a beta of -7.29 and a short float of 11.9% with 0.59 days to cover. Shares are up 148% 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 LiveDeal as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins, weak operating cash flow and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • 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 Software & Services industry. The net income has significantly decreased by 202.3% when compared to the same quarter one year ago, falling from -$0.51 million to -$1.54 million.
  • The gross profit margin for LIVEDEAL INC is currently extremely low, coming in at 11.07%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -57.64% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$2.53 million or 778.12% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • LIVEDEAL INC 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. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, LIVEDEAL INC reported poor results of -$0.66 versus -$0.26 in the prior year. This year, the market expects an improvement in earnings (-$0.34 versus -$0.66).
  • 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. Compared to other companies in the Internet Software & Services industry and the overall market, LIVEDEAL INC's return on equity significantly trails that of both the industry average and the S&P 500.

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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