Trade-Ideas LLC identified

Qunar Cayman Islands

(

QUNR

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

  • QUNR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $66.0 million.
  • QUNR has traded 51,697 shares today.
  • QUNR is down 5.6% today.
  • QUNR was up 9.8% yesterday.

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More details on QUNR:

Qunar Cayman Islands Limited operates an online travel commerce platform in the People's Republic of China. Currently there are 2 analysts that rate Qunar Cayman Islands a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Qunar Cayman Islands has been 2.8 million shares per day over the past 30 days. Qunar Cayman Islands has a market cap of $4.9 billion and is part of the services sector and leisure industry. Shares are down 22.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Qunar Cayman Islands as a

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 generally high debt management risk.

Highlights from the ratings report include:

  • QUNAR CAYMAN ISLANDS -ADR's earnings per share declined by 11.5% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, QUNAR CAYMAN ISLANDS -ADR reported poor results of -$2.53 versus -$0.24 in the prior year. For the next year, the market is expecting a contraction of 588.1% in earnings (-$17.41 versus -$2.53).
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Internet & Catalog Retail industry average. The net income has significantly decreased by 25.3% when compared to the same quarter one year ago, falling from -$92.25 million to -$115.62 million.
  • The debt-to-equity ratio is very high at 2.91 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, QUNR's quick ratio is somewhat strong at 1.45, demonstrating the ability to handle short-term liquidity needs.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Internet & Catalog Retail industry and the overall market, QUNAR CAYMAN ISLANDS -ADR's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for QUNAR CAYMAN ISLANDS -ADR is rather high; currently it is at 64.57%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, QUNR's net profit margin of -55.45% significantly underperformed when compared to the industry average.

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