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 Qlik Technologies ( QLIK) 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 Qlik Technologies as such a stock due to the following factors:
- QLIK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $44.5 million.
- QLIK has traded 1.4 million shares today.
- QLIK traded in a range 203.9% of the normal price range with a price range of $2.32.
- QLIK traded below its daily resistance level (quality: 174 days, meaning that the stock is crossing a resistance level set by the last 174 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 QLIK with the Ticky from Trade-Ideas. See the FREE profile for QLIK NOW at Trade-Ideas More details on QLIK: Qlik Technologies Inc. engages in the development, commercialization, and implementation of software products and related services for user-driven business intelligence that enables customers to make business decisions primarily in the Americas, Europe, the Asia-Pacific region, and Africa. Currently there are 12 analysts that rate Qlik Technologies a buy, 1 analyst rates it a sell, and 4 rate it a hold. The average volume for Qlik Technologies has been 1.2 million shares per day over the past 30 days. Qlik has a market cap of $3.1 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 2.45 and a short float of 11.1% with 4.62 days to cover. Shares are up 61.2% year to date as of the close of trading on Friday. 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 Qlik Technologies 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 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:
- The revenue growth came in higher than the industry average of 5.7%. Since the same quarter one year prior, revenues rose by 25.9%. 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.
- QLIK 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. To add to this, QLIK has a quick ratio of 2.25, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for QLIK TECHNOLOGIES INC is currently very high, coming in at 88.31%. Regardless of QLIK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, QLIK's net profit margin of -7.45% significantly underperformed when compared to the industry average.
- 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 294.4% when compared to the same quarter one year ago, falling from -$2.04 million to -$8.05 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. Compared to other companies in the Software industry and the overall market, QLIK TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Qlik Technologies Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.