Why Intermolecular (IMI) Stock Is Surging On Monday

NEW YORK (TheStreet) -- Shares of Intermolecular Inc. (IMI) are skyrocketing 43.17% to $3.25 on Monday following the company's announcement that SanDisk Corp. (SNDK) and Toshiba have jointly elected to take an exclusive license, in a limited field, to Intermolecular's rights in the intellectual property developed under the collaborative development program and Intermolecular's background intellectual property.

Intermolecular, a company involved in the research and development in the semiconductor and clean energy industries, said the related technologies are being developed for next generation memory.

SanDisk's and Toshiba's CDP with Intermolecular is specifically aimed at developing memory products, materials, processes and device technologies.

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The license deal states SanDisk and Toshiba will prepay non-refundable royalties in quarterly installments over a predetermined period, according to Intermolecular.

TheStreet Ratings team rates INTERMOLECULAR INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate INTERMOLECULAR INC (IMI) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. 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, weak operating cash flow and generally disappointing historical performance in the stock itself."

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Why Intermolecular (IMI) Is Down Today