Trade-Ideas LLC identified

Cardiovascular Systems

(

CSII

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

  • CSII has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.3 million.
  • CSII has traded 559,402 shares today.
  • CSII is up 3.1% today.
  • CSII was down 18.1% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in CSII with the Ticky from Trade-Ideas. See the FREE profile for CSII NOW at Trade-Ideas

More details on CSII:

Cardiovascular Systems, Inc., a medical technology company, develops, manufactures, and markets devices to treat vascular diseases in the United States. Currently there are 6 analysts that rate Cardiovascular Systems a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Cardiovascular Systems has been 383,300 shares per day over the past 30 days. Cardiovascular Systems has a market cap of $540.1 million and is part of the health care sector and health services industry. The stock has a beta of 2.97 and a short float of 9.1% with 2.26 days to cover. Shares are down 54.7% year-to-date as of the close of trading on Thursday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cardiovascular Systems as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, CARDIOVASCULAR SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • CSII's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 33.61%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • CARDIOVASCULAR SYSTEMS INC has improved earnings per share by 12.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, CARDIOVASCULAR SYSTEMS INC continued to lose money by earning -$1.04 versus -$1.24 in the prior year. For the next year, the market is expecting a contraction of 1.0% in earnings (-$1.05 versus -$1.04).
  • Net operating cash flow has increased to -$7.27 million or 14.86% when compared to the same quarter last year. Despite an increase in cash flow, CARDIOVASCULAR SYSTEMS INC's cash flow growth rate is still lower than the industry average growth rate of 27.56%.
  • The gross profit margin for CARDIOVASCULAR SYSTEMS INC is currently very high, coming in at 73.75%. 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 -17.89% is in-line with the industry average.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.