3 Stocks Pushing The Specialty Retail Industry Lower

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The Specialty Retail industry as a whole closed the day down 1.3% versus the S&P 500, which was down 0.5%. Laggards within the Specialty Retail industry included Perfumania Holdings ( PERF), down 3.2%, China Auto Logistics ( CALI), down 1.7%, Mecox Lane ( MCOX), down 5.6%, PCM ( PCMI), down 1.9% and Lentuo International ( LAS), down 4.4%.

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

PCM ( PCMI) is one of the companies that pushed the Specialty Retail industry lower today. PCM was down $0.22 (1.9%) to $11.60 on average volume. Throughout the day, 19,508 shares of PCM exchanged hands as compared to its average daily volume of 14,100 shares. The stock ranged in price between $11.51-$11.73 after having opened the day at $11.73 as compared to the previous trading day's close of $11.82.

PCM, Inc. operates as a multi-vendor provider of technology products, services, and solutions to commercial businesses; state, local, and federal governments; and educational institutions and individual consumers primarily in the United States. PCM has a market cap of $146.2 million and is part of the services sector. Shares are up 15.1% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates PCM as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from TheStreet Ratings analysis on PCMI go as follows:

  • PCM INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, PCM INC increased its bottom line by earning $0.69 versus $0.42 in the prior year. This year, the market expects an improvement in earnings ($0.81 versus $0.69).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 133.6% when compared to the same quarter one year prior, rising from $1.24 million to $2.89 million.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, PCM INC's return on equity is below that of both the industry average and the S&P 500.
  • The gross profit margin for PCM INC is rather low; currently it is at 15.75%. Regardless of PCMI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.85% trails the industry average.

You can view the full analysis from the report here: PCM Ratings Report

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At the close, Mecox Lane ( MCOX) was down $0.26 (5.6%) to $4.32 on average volume. Throughout the day, 17,343 shares of Mecox Lane exchanged hands as compared to its average daily volume of 18,400 shares. The stock ranged in price between $4.20-$4.57 after having opened the day at $4.51 as compared to the previous trading day's close of $4.58.

Mecox Lane Limited designs and sells apparel, accessories, and home and healthcare products through its online platform and stores in the People's Republic of China. Mecox Lane has a market cap of $59.1 million and is part of the services sector. Shares are up 25.5% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates Mecox Lane 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 and disappointing return on equity.

Highlights from TheStreet Ratings analysis on MCOX go as follows:

  • MECOX LANE LTD's earnings per share declined by 25.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, MECOX LANE LTD reported poor results of -$2.20 versus -$1.95 in the prior year.
  • 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 & Catalog Retail industry. The net income has significantly decreased by 37.3% when compared to the same quarter one year ago, falling from -$4.23 million to -$5.80 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 & Catalog Retail industry and the overall market, MECOX LANE LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • MCOX, with its decline in revenue, underperformed when compared the industry average of 4.3%. Since the same quarter one year prior, revenues slightly dropped by 8.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • MCOX 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. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.50 is very weak and demonstrates a lack of ability to pay short-term obligations.

You can view the full analysis from the report here: Mecox Lane Ratings Report

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China Auto Logistics ( CALI) was another company that pushed the Specialty Retail industry lower today. China Auto Logistics was down $0.04 (1.7%) to $2.26 on light volume. Throughout the day, 16,405 shares of China Auto Logistics exchanged hands as compared to its average daily volume of 25,900 shares. The stock ranged in price between $2.15-$2.34 after having opened the day at $2.30 as compared to the previous trading day's close of $2.30.

China Auto Logistics Inc. sells and trades in imported automobiles in the People's Republic of China. It operates in five segments: Sales of Automobiles, Financing Services, Web-Based Advertising, Automobile Value Added Services, and Auto Mall Management Services. China Auto Logistics has a market cap of $9.3 million and is part of the services sector. Shares are down 35.4% year-to-date as of the close of trading on Thursday.

TheStreet Ratings rates China Auto Logistics 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.

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Highlights from TheStreet Ratings analysis on CALI go as follows:

  • The debt-to-equity ratio is very high at 3.22 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, CALI maintains a poor quick ratio of 0.77, which illustrates the inability to avoid short-term cash problems.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Specialty Retail industry and the overall market, CHINA AUTO LOGISTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CHINA AUTO LOGISTICS INC is currently extremely low, coming in at 1.36%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.25% trails that of the industry average.
  • Net operating cash flow has significantly decreased to -$12.77 million or 307.94% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • CHINA AUTO LOGISTICS 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, CHINA AUTO LOGISTICS INC reported lower earnings of $0.16 versus $0.67 in the prior year.

You can view the full analysis from the report here: China Auto Logistics 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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