Trade-Ideas LLC identified

FEI

(

FEIC

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

  • FEIC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.1 million.
  • FEIC has traded 58,364 shares today.
  • FEIC is up 3.6% today.
  • FEIC was down 8.2% yesterday.

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More details on FEIC:

FEI Company supplies scientific instruments and related services for nanoscale applications and solutions for industry and science. The company operates through two segments, Industry Group and Science Group. The stock currently has a dividend yield of 1.6%. FEIC has a PE ratio of 27. Currently there are 4 analysts that rate FEI a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Recommends

The average volume for FEI has been 269,000 shares per day over the past 30 days. FEI has a market cap of $3.2 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.32 and a short float of 6.9% with 8.27 days to cover. Shares are down 22.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates FEI as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and premium valuation.

Highlights from the ratings report include:

  • FEIC has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, FEIC has a quick ratio of 2.24, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has significantly increased by 62.38% to $45.75 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 21.33%.
  • 49.06% is the gross profit margin for FEI CO which we consider to be strong. Regardless of FEIC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.90% trails the industry average.
  • In its most recent trading session, FEIC has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

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