3 Stocks Pushing The Computer Hardware Industry Lower

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The Computer Hardware industry as a whole closed the day down 0.6% versus the S&P 500, which was down 0.5%. Laggards within the Computer Hardware industry included Acorn Energy ( ACFN), down 5.1%, Mad Catz Interactive ( MCZ), down 4.9%, Hutchinson Technology ( HTCH), down 3.6%, Echelon ( ELON), down 2.4% and China TechFaith Wireless Comm Tech ( CNTF), down 11.8%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Hutchinson Technology ( HTCH) is one of the companies that pushed the Computer Hardware industry lower today. Hutchinson Technology was down $0.08 (3.6%) to $2.14 on average volume. Throughout the day, 257,474 shares of Hutchinson Technology exchanged hands as compared to its average daily volume of 222,500 shares. The stock ranged in price between $2.10-$2.26 after having opened the day at $2.26 as compared to the previous trading day's close of $2.22.

Hutchinson Technology Incorporated researches, designs, develops, manufactures, and supplies suspension assemblies for hard disk drives. The company's suspension assemblies are components in computers, and various consumer electronics and enterprise storage products. Hutchinson Technology has a market cap of $61.2 million and is part of the technology sector. Shares are down 31.9% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Hutchinson Technology a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Hutchinson Technology as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on HTCH go as follows:

  • 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 Computers & Peripherals industry. The net income has significantly decreased by 566.3% when compared to the same quarter one year ago, falling from $1.87 million to -$8.71 million.
  • The debt-to-equity ratio of 1.22 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, HTCH maintains a poor quick ratio of 0.80, which illustrates the inability to avoid short-term cash problems.
  • 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 Computers & Peripherals industry and the overall market, HUTCHINSON TECHNOLOGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for HUTCHINSON TECHNOLOGY INC is currently lower than what is desirable, coming in at 25.96%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -14.34% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$2.19 million or 158.83% 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 analysis from the report here: Hutchinson Technology Ratings Report

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At the close, Mad Catz Interactive ( MCZ) was down $0.03 (4.9%) to $0.63 on light volume. Throughout the day, 133,959 shares of Mad Catz Interactive exchanged hands as compared to its average daily volume of 620,200 shares. The stock ranged in price between $0.63-$0.67 after having opened the day at $0.66 as compared to the previous trading day's close of $0.66.

Mad Catz Interactive, Inc. designs, manufactures, markets, sells, and distributes accessories for videogame platforms, personal computers (PC) and Mac, smart phones, and other smart devices. Mad Catz Interactive has a market cap of $43.0 million and is part of the technology sector. Shares are up 30.8% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Mad Catz Interactive 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, generally high debt management risk, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on MCZ go as follows:

  • The debt-to-equity ratio of 1.19 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, MCZ has a quick ratio of 0.54, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • 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 Household Durables industry and the overall market, MAD CATZ INTERACTIVE INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for MAD CATZ INTERACTIVE INC is currently lower than what is desirable, coming in at 25.43%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.72% trails that of the industry average.
  • Net operating cash flow has significantly decreased to $0.62 million or 90.11% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • MAD CATZ INTERACTIVE INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, MAD CATZ INTERACTIVE INC reported poor results of -$0.18 versus -$0.04 in the prior year.

You can view the full analysis from the report here: Mad Catz Interactive Ratings Report

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Acorn Energy ( ACFN) was another company that pushed the Computer Hardware industry lower today. Acorn Energy was down $0.08 (5.1%) to $1.59 on average volume. Throughout the day, 160,946 shares of Acorn Energy exchanged hands as compared to its average daily volume of 209,000 shares. The stock ranged in price between $1.58-$1.70 after having opened the day at $1.70 as compared to the previous trading day's close of $1.68.

Acorn Energy, Inc., through its subsidiaries, provides technology driven solutions for energy infrastructure asset management worldwide. It offers oil and gas sensor systems, a fiber optic sensing system for the energy, commercial security, and defense markets. Acorn Energy has a market cap of $37.1 million and is part of the technology sector. Shares are down 59.0% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate Acorn Energy a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Acorn Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on ACFN go as follows:

  • 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 Commercial Services & Supplies industry and the overall market, ACORN ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for ACORN ENERGY INC is currently lower than what is desirable, coming in at 34.06%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -96.63% is significantly below that of the industry average.
  • ACFN's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 80.72%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Commercial Services & Supplies industry average. The net income increased by 13.5% when compared to the same quarter one year prior, going from -$4.98 million to -$4.30 million.
  • ACFN, with its decline in revenue, underperformed when compared the industry average of 3.9%. Since the same quarter one year prior, revenues fell by 22.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

You can view the full analysis from the report here: Acorn Energy 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.

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