Trade-Ideas: AutoNavi Holdings (AMAP) Is Today's

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

  • AMAP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.0 million.
  • AMAP has traded 822,317 shares today.
  • AMAP is up 6.2% today.
  • AMAP was down 7.1% yesterday.

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More details on AMAP:

AutoNavi Holdings Limited, through its subsidiaries, provides digital map content, and navigation and location-based solutions in China. AMAP has a PE ratio of 20.8. Currently there is 1 analyst that rates AutoNavi Holdings a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for AutoNavi Holdings has been 670,700 shares per day over the past 30 days. AutoNavi has a market cap of $1.1 billion and is part of the technology sector and computer software & services industry. Shares are up 37.3% year to date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates AutoNavi Holdings as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • AMAP 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 11.26, which clearly demonstrates the ability to cover short-term cash needs.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings 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 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 Software industry. The net income has significantly decreased by 57.0% when compared to the same quarter one year ago, falling from $8.81 million to $3.78 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Software industry and the overall market, AUTONAVI HLDG LTD's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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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