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 Oxygen Biotherapeutics ( OXBT) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Oxygen Biotherapeutics as such a stock due to the following factors:
- OXBT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.8 million.
- OXBT has traded 62,007 shares today.
- OXBT is up 5.2% today.
- OXBT was down 8.8% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in OXBT with the Ticky from Trade-Ideas. See the FREE profile for OXBT NOW at Trade-Ideas More details on OXBT: Oxygen Biotherapeutics, Inc., a development stage company, engages in developing biotechnology products that deliver oxygen to target tissues in the body primarily in the United States. The average volume for Oxygen Biotherapeutics has been 3.6 million shares per day over the past 30 days. Oxygen has a market cap of $61.2 million and is part of the health care sector and drugs industry. The stock has a beta of 0.60 and a short float of 16.9% with 0.32 days to cover. Shares are up 63.3% 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 Oxygen Biotherapeutics as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and generally disappointing historical performance in the stock itself. 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 Biotechnology industry. The net income has significantly decreased by 126.8% when compared to the same quarter one year ago, falling from -$1.56 million to -$3.53 million.
- Net operating cash flow has significantly decreased to -$2.01 million or 78.45% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- OXBT's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 60.55%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- OXBT, with its very weak revenue results, has greatly underperformed against the industry average of 10.6%. Since the same quarter one year prior, revenues plummeted by 88.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- Compared to other companies in the Biotechnology industry and the overall market, OXYGEN BIOTHERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Oxygen Biotherapeutics 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.