Trade-Ideas LLC identified

MedAssets

(

MDAS

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified MedAssets as such a stock due to the following factors:

  • MDAS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.0 million.
  • MDAS has traded 328,154 shares today.
  • MDAS is trading at a new lifetime high.

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More details on MDAS:

MedAssets, Inc., a performance improvement company, provides technology-enabled products and services for hospitals, health systems, non-acute healthcare providers, payers, and other service providers and product manufacturers in the United States. Currently there are 4 analysts that rate MedAssets a buy, 2 analysts rate it a sell, and 13 rate it a hold.

The average volume for MedAssets has been 488,100 shares per day over the past 30 days. MedAssets has a market cap of $1.4 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.95 and a short float of 7.4% with 11.33 days to cover. Shares are up 20% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates MedAssets as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

Highlights from the ratings report include:

  • MDAS's revenue growth trails the industry average of 36.6%. Since the same quarter one year prior, revenues slightly increased by 8.6%. 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 increased to $46.64 million or 41.09% when compared to the same quarter last year. In addition, MEDASSETS INC has also vastly surpassed the industry average cash flow growth rate of -29.58%.
  • After a year of stock price fluctuations, the net result is that MDAS's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • Currently the debt-to-equity ratio of 1.85 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. To add to this, MDAS has a quick ratio of 0.53, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Health Care Technology industry and the overall market, MEDASSETS INC's return on equity significantly trails that of both the industry average and the S&P 500.

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