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 or Stephanie Link.

Trade-Ideas LLC identified

Thermogenesis Corporation

(

KOOL

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

  • KOOL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.5 million.
  • KOOL has traded 334,206 shares today.
  • KOOL is down 5.3% today.
  • KOOL was up 14.3% yesterday.

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More details on KOOL:

ThermoGenesis Corp. designs, develops, and commercializes devices and disposable tools for the processing, storage, and administration of cell therapies.

TST Recommends

The average volume for Thermogenesis Corporation has been 97,800 shares per day over the past 30 days. Thermogenesis has a market cap of $18.2 million and is part of the health care sector and health services industry. The stock has a beta of 1.67 and a short float of 0.7% with 0.02 days to cover. Shares are up 125.5% year-to-date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Thermogenesis Corporation as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • 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 Health Care Equipment & Supplies industry. The net income has significantly decreased by 331.1% when compared to the same quarter one year ago, falling from $1.00 million to -$2.30 million.
  • 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 Health Care Equipment & Supplies industry and the overall market, THERMOGENESIS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$1.38 million or 77.73% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • 42.45% is the gross profit margin for THERMOGENESIS CORP which we consider to be strong. Regardless of KOOL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, KOOL's net profit margin of -63.09% significantly underperformed when compared to the industry average.
  • KOOL, with its decline in revenue, slightly underperformed the industry average of 3.4%. Since the same quarter one year prior, revenues fell by 11.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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