Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model
NEW YORK (
) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and weak operating cash flow.
- ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.
Highlights from the ratings report include:
- PARAMETRIC SOUND CORP has exprienced 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, 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 Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 252.2% when compared to the same quarter one year ago, falling from -$0.49 million to -$1.71 million.
- Net operating cash flow has significantly decreased to -$1.06 million or 260.40% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, PARAMETRIC SOUND CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Compared to its closing price of one year ago, PAMT's share price has jumped by 87.61%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in PAMT do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
Parametric Sound Corporation, a sound technology company, focuses on delivering directed audio solutions principally in North America, Europe, and Asia. Its HyperSound System (HSS) technology generates sound along a directional ultrasonic column. Parametric Sound has a market cap of $39.5 million and is part of the technology sector and telecommunications industry. Shares are up 68.9% year to date as of the close of trading on Monday.
You can view the full
or get investment ideas from our
-- Written by a member of TheStreet Ratings Staff
FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge!
Free download now