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 LiveDeal ( LIVE) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified LiveDeal as such a stock due to the following factors:
- LIVE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.9 million.
- LIVE has traded 53,872 shares today.
- LIVE is down 5.5% today.
- LIVE was up 19.8% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in LIVE with the Ticky from Trade-Ideas. See the FREE profile for LIVE NOW at Trade-Ideas More details on LIVE: LiveDeal, Inc., together with its subsidiaries, provides customer acquisition and online listing services for small and medium-sized local businesses in the United States. The average volume for LiveDeal has been 398,600 shares per day over the past 30 days. LiveDeal has a market cap of $68.6 million and is part of the technology sector and internet industry. The stock has a beta of -2.36 and a short float of 13% with 0.16 days to cover. Shares are up 261.8% year-to-date as of the close of trading on Thursday. 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 LiveDeal as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow. 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 Internet Software & Services industry. The net income has decreased by 13.9% when compared to the same quarter one year ago, dropping from -$0.84 million to -$0.96 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, LIVEDEAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for LIVEDEAL INC is rather low; currently it is at 16.18%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -155.50% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$0.40 million or 300.00% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- LIVE, with its decline in revenue, underperformed when compared the industry average of 16.7%. Since the same quarter one year prior, revenues slightly dropped by 0.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full LiveDeal 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.