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
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Youku Tudou Inc ADR repr Class A as such a stock due to the following factors:
- YOKU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $70.8 million.
- YOKU has traded 6.4 million shares today.
- YOKU traded in a range 203.3% of the normal price range with a price range of $2.88.
- YOKU traded below its daily resistance level (quality: 249 days, meaning that the stock is crossing a resistance level set by the last 249 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in YOKU with the Ticky from Trade-Ideas. See the FREE profile for YOKU NOW at Trade-Ideas
More details on YOKU:
Youku Tudou Inc. operates as an Internet television company in the People's Republic of China. Its Internet television platform enables consumers to search, view, and share video content across various devices. Currently there are 4 analysts that rate Youku Tudou Inc ADR repr Class A a buy, 1 analyst rates it a sell, and 3 rate it a hold.
The average volume for Youku Tudou Inc ADR repr Class A has been 4.3 million shares per day over the past 30 days. Youku Tudou Inc ADR repr Class A has a market cap of $4.1 billion and is part of the technology sector and internet industry. Shares are down 20.3% year-to-date as of the close of trading on Friday.
rates Youku Tudou Inc ADR repr Class A as a
. 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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and feeble growth in the company's earnings per share.
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 47.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- YOKU 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 3.33, which clearly demonstrates the ability to cover short-term cash needs.
- 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 Internet Software & Services industry and the overall market, YOUKU TUDOU INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for YOUKU TUDOU INC is currently lower than what is desirable, coming in at 27.85%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -3.31% is significantly below that of the industry average.
- You can view the full Youku Tudou Inc ADR repr Class A Ratings Report.