Trade-Ideas LLC identified

Bankrate

(

RATE

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

  • RATE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.4 million.
  • RATE has traded 286,827 shares today.
  • RATE is up 9.9% today.
  • RATE was down 42.6% yesterday.

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More details on RATE:

Bankrate, Inc. operates as an online publisher, aggregator, and distributor of personal finance content in the United States and internationally. Currently there are 3 analysts that rate Bankrate a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Bankrate has been 660,100 shares per day over the past 30 days. Bankrate has a market cap of $1.2 billion and is part of the technology sector and internet industry. The stock has a beta of 1.28 and a short float of 5.9% with 1.98 days to cover. Shares are down 4.7% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Bankrate as a

hold

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.

Highlights from the ratings report include:

  • Net operating cash flow has significantly increased by 298.05% to $22.66 million when compared to the same quarter last year. In addition, BANKRATE INC has also vastly surpassed the industry average cash flow growth rate of 4.52%.
  • 46.90% is the gross profit margin for BANKRATE INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -16.61% is in-line with the industry average.
  • Compared to where it was trading a year ago, RATE's share price has not changed very much due to (a) the relatively weak year-over-year performance of the overall market, (b) the company's stagnant earnings, and (c) other mixed results. 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.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Internet Software & Services industry and the overall market, BANKRATE INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet Software & Services industry. The net income has significantly decreased by 233.0% when compared to the same quarter one year ago, falling from -$7.02 million to -$23.39 million.

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