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

Oxygen Biotherapeutics

(

OXBT

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Oxygen Biotherapeutics as such a stock due to the following factors:

  • OXBT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.4 million.
  • OXBT has traded 4.4 million shares today.
  • OXBT is down 3.8% today.
  • OXBT was up 20.6% yesterday.

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More details on OXBT:

Oxygen Biotherapeutics, Inc., a development stage company, engages in developing biotechnology products that deliver oxygen to target tissues in the body primarily in the United States.

The average volume for Oxygen Biotherapeutics has been 3.1 million shares per day over the past 30 days. Oxygen has a market cap of $47.7 million and is part of the health care sector and drugs industry. The stock has a beta of 0.22 and a short float of 5.3% with 0.11 days to cover. Shares are down 59.4% year to date as of the close of trading on Tuesday.

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 Oxygen Biotherapeutics as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • The debt-to-equity ratio is very high at 3.03 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, OXBT maintains a poor quick ratio of 0.89, which illustrates the inability to avoid short-term cash problems.
  • OXBT's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 66.32%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The revenue fell significantly faster than the industry average of 11.3%. Since the same quarter one year prior, revenues fell by 30.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Compared to other companies in the Biotechnology industry and the overall market, OXYGEN BIOTHERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • OXYGEN BIOTHERAPEUTICS INC has improved earnings per share by 23.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, OXYGEN BIOTHERAPEUTICS INC continued to lose money by earning -$11.20 versus -$22.00 in the prior year.

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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