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 Solazyme ( SZYM) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Solazyme as such a stock due to the following factors:
- SZYM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.2 million.
- SZYM has traded 209,466 shares today.
- SZYM is down 3.2% today.
- SZYM was up 6.7% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in SZYM with the Ticky from Trade-Ideas. See the FREE profile for SZYM NOW at Trade-Ideas More details on SZYM: Solazyme, Inc. produces and sells renewable oil for chemicals and fuels, nutrition, and skin and personal care markets. Currently there are 8 analysts that rate Solazyme a buy, 1 analyst rates it a sell, and none rate it a hold. The average volume for Solazyme has been 798,200 shares per day over the past 30 days. Solazyme has a market cap of $804.9 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.68 and a short float of 26.3% with 7.88 days to cover. Shares are up 8.4% 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 Solazyme as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and weak operating cash flow. Highlights from the ratings report include:
- SOLAZYME INC's earnings per share declined by 27.0% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, SOLAZYME INC reported poor results of -$1.37 versus -$0.92 in the prior year. For the next year, the market is expecting a contraction of 23.4% in earnings (-$1.69 versus -$1.37).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 36.4% when compared to the same quarter one year ago, falling from -$22.50 million to -$30.70 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 Oil, Gas & Consumable Fuels industry and the overall market, SOLAZYME INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to -$19.65 million or 28.61% when compared to the same quarter last year. Despite a decrease in cash flow SOLAZYME INC is still fairing well by exceeding its industry average cash flow growth rate of -51.05%.
- Despite currently having a low debt-to-equity ratio of 0.55, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 10.15 is very high and demonstrates very strong liquidity.
- You can view the full Solazyme 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.