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 Vringo ( VRNG) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Vringo as such a stock due to the following factors:
- VRNG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $40.0 million.
- VRNG has traded 790,973 shares today.
- VRNG is down 4% today.
- VRNG was up 20.7% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in VRNG with the Ticky from Trade-Ideas. See the FREE profile for VRNG NOW at Trade-Ideas More details on VRNG: Vringo, Inc., together with its subsidiaries, engages in the innovation, acquisition, licensing, and protection of intellectual property worldwide. Currently there are 2 analysts that rate Vringo a buy, no analysts rate it a sell, and none rate it a hold. The average volume for Vringo has been 1.8 million shares per day over the past 30 days. Vringo has a market cap of $334.0 million and is part of the technology sector and computer software & services industry. The stock has a beta of -0.11 and a short float of 25.8% with 2.11 days to cover. Shares are up 61.8% year-to-date as of the close of trading on Wednesday. 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 Vringo 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, notable return on equity and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and weak operating cash flow. Highlights from the ratings report include:
- VRNG 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 9.66, which clearly demonstrates the ability to cover short-term cash needs.
- Compared to other companies in the Software industry and the overall market, VRINGO INC's return on equity significantly trails that of both the industry average and the S&P 500.
- 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 238.0% when compared to the same quarter one year ago, falling from -$3.12 million to -$10.56 million.
- Net operating cash flow has significantly decreased to -$6.42 million or 87.05% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full Vringo 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.