Trade-Ideas LLC identified

MicroStrategy

(

MSTR

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

  • MSTR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.2 million.
  • MSTR has traded 56,283 shares today.
  • MSTR is up 3.1% today.
  • MSTR was down 8% yesterday.

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More details on MSTR:

MicroStrategy Incorporated designs, develops, markets, and sells enterprise-ready analytics, mobile, and security software platforms worldwide. MSTR has a PE ratio of 21. Currently there are 3 analysts that rate MicroStrategy a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for MicroStrategy has been 130,100 shares per day over the past 30 days. MicroStrategy has a market cap of $1.5 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.79 and a short float of 6.5% with 3.79 days to cover. Shares are down 17.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates MicroStrategy as a

buy

. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, notable return on equity, reasonable valuation levels, good cash flow from operations and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 2927.6% when compared to the same quarter one year prior, rising from -$0.85 million to $23.89 million.
  • 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. In comparison to the other companies in the Software industry and the overall market, MICROSTRATEGY INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • Net operating cash flow has significantly increased by 1509.94% to $31.41 million when compared to the same quarter last year. In addition, MICROSTRATEGY INC has also vastly surpassed the industry average cash flow growth rate of -8.31%.
  • The gross profit margin for MICROSTRATEGY INC is currently very high, coming in at 85.47%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 18.44% trails the industry average.

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