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 "dead cat bounce" (down big yesterday but up 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 $25.3 million.
- LIVE has traded 136,975 shares today.
- LIVE is up 3.1% today.
- LIVE was down 6.9% 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 2.0 million shares per day over the past 30 days. LiveDeal has a market cap of $104.1 million and is part of the technology sector and internet industry. The stock has a beta of -2.36 and a short float of 12.2% with 0.28 days to cover. Shares are up 438.2% 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. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity. Highlights from the ratings report include:
- 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 currently very high, coming in at 79.60%. Regardless of LIVE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LIVE's net profit margin of -68.80% significantly underperformed when compared to the industry average.
- LIVEDEAL INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, LIVEDEAL INC reported poor results of -$0.66 versus -$0.26 in the prior year.
- LIVE 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. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.84 is somewhat weak and could be cause for future problems.
- Net operating cash flow has slightly increased to -$0.24 million or 7.25% when compared to the same quarter last year. Despite an increase in cash flow, LIVEDEAL INC's average is still marginally south of the industry average growth rate of 12.06%.
- 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.