Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Glu Mobile

(

GLUU

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

  • GLUU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.5 million.
  • GLUU has traded 307,230 shares today.
  • GLUU is up 3.3% today.
  • GLUU was down 20.6% yesterday.

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More details on GLUU:

Glu Mobile Inc. develops, publishes, and markets a portfolio of games for the smartphones and tablet devices users. The company offers free-to-play action, casual, racing, and sports genre mobile games. GLUU has a PE ratio of 63. Currently there are 6 analysts that rate Glu Mobile a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Glu Mobile has been 2.3 million shares per day over the past 30 days. Glu Mobile has a market cap of $682.3 million and is part of the technology sector and computer software & services industry. The stock has a beta of 3.69 and a short float of 14.7% with 4.89 days to cover. Shares are up 15.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Glu Mobile as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. 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:

  • The revenue growth greatly exceeded the industry average of 11.7%. Since the same quarter one year prior, revenues rose by 37.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • GLUU 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. Along with this, the company maintains a quick ratio of 3.10, which clearly demonstrates the ability to cover short-term cash needs.
  • GLU MOBILE INC's earnings per share declined by 25.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GLU MOBILE INC turned its bottom line around by earning $0.07 versus -$0.28 in the prior year. This year, the market expects an improvement in earnings ($0.22 versus $0.07).
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Software industry average, but is less than that of the S&P 500. The net income has significantly decreased by 46.2% when compared to the same quarter one year ago, falling from -$3.77 million to -$5.51 million.
  • 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 Software industry and the overall market on the basis of return on equity, GLU MOBILE INC underperformed against that of the industry average and is significantly less than that of the S&P 500.

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