Trade-Ideas LLC identified

Voltari

(

VLTC

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

  • VLTC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.7 million.
  • VLTC has traded 93,703 shares today.
  • VLTC is up 8.3% today.
  • VLTC was down 15.8% yesterday.

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More details on VLTC:

Voltari Corporation, together with its subsidiaries, provides relevance-driven merchandising, digital marketing, and advertising solutions, primarily over smartphones and other mobile devices to brands, marketers, and advertising agencies. It also offers predictive analytics services.

The average volume for Voltari has been 279,800 shares per day over the past 30 days. Voltari has a market cap of $31.5 million and is part of the technology sector and telecommunications industry. The stock has a beta of -2.01 and a short float of 12.4% with 0.30 days to cover. Shares are up 1198.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Voltari as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • 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 Software industry and the overall market, VOLTARI CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for VOLTARI CORP is currently lower than what is desirable, coming in at 25.75%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, VLTC's net profit margin of -243.97% significantly underperformed when compared to the industry average.
  • VOLTARI CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, VOLTARI CORP reported poor results of -$7.17 versus -$6.49 in the prior year.
  • VLTC, with its very weak revenue results, has greatly underperformed against the industry average of 15.7%. Since the same quarter one year prior, revenues plummeted by 74.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • VLTC 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, VLTC has a quick ratio of 2.49, which demonstrates the ability of the company to cover short-term liquidity needs.

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