Trade-Ideas LLC identified

MSG Networks

(

MSGN

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

  • MSGN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.3 million.
  • MSGN has traded 320,362 shares today.
  • MSGN is up 3% today.
  • MSGN was down 5.4% yesterday.

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More details on MSGN:

MSG Networks Inc. engages in media business in the United States. It produces and develops content for various distribution platforms, including content originating from its venues. MSGN has a PE ratio of 9. Currently there are 2 analysts that rate MSG Networks a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for MSG Networks has been 879,900 shares per day over the past 30 days. MSG has a market cap of $1.2 billion and is part of the services sector and media industry. The stock has a beta of 0.60 and a short float of 5.7% with 2.52 days to cover. Shares are down 3.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates MSG Networks as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 6.5%. Since the same quarter one year prior, revenues slightly increased by 3.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 487.10% to $93.72 million when compared to the same quarter last year. In addition, MSG NETWORKS INC has also vastly surpassed the industry average cash flow growth rate of 9.41%.
  • The gross profit margin for MSG NETWORKS INC is rather high; currently it is at 59.43%. Regardless of MSGN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MSGN's net profit margin of -80.78% significantly underperformed when compared to the industry average.
  • The share price of MSG NETWORKS INC has not done very well: it is down 16.21% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 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 Media industry. The net income has significantly decreased by 210.7% when compared to the same quarter one year ago, falling from $108.07 million to -$119.69 million.

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