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The Specialty Retail industry as a whole closed the day down 1.1% versus the S&P 500, which was down 0.4%. Laggards within the Specialty Retail industry included China Auto Logistics ( CALI), down 3.1%, PCM ( PCMI), down 3.6%, Lentuo International ( LAS), down 1.9%, Rush ( RUSHB), down 2.4% and CSS Industries ( CSS), down 1.9%.

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

Lentuo International ( LAS) is one of the companies that pushed the Specialty Retail industry lower today. Lentuo International was down $0.05 (1.9%) to $2.60 on light volume. Throughout the day, 39,523 shares of Lentuo International exchanged hands as compared to its average daily volume of 83,700 shares. The stock ranged in price between $2.46-$2.64 after having opened the day at $2.50 as compared to the previous trading day's close of $2.65.

Lentuo International Inc. operates automobile franchise dealerships in the People's Republic of China. Lentuo International has a market cap of $88.9 million and is part of the consumer goods sector. Shares are down 3.6% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Lentuo International as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, a generally disappointing performance in the stock itself and poor profit margins.

Highlights from TheStreet Ratings analysis on LAS go as follows:

  • The revenue growth came in higher than the industry average of 1.4%. Since the same quarter one year prior, revenues rose by 11.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • LENTUO INTERNATIONAL -ADR 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 year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, LENTUO INTERNATIONAL -ADR turned its bottom line around by earning $0.12 versus -$0.03 in the prior year. This year, the market expects an improvement in earnings ($0.34 versus $0.12).
  • LAS'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 39.35%, 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 debt-to-equity ratio of 1.38 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with this, the company manages to maintain a quick ratio of 0.29, which clearly demonstrates the inability to cover short-term cash needs.

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

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At the close, PCM ( PCMI) was down $0.41 (3.6%) to $11.04 on light volume. Throughout the day, 9,652 shares of PCM exchanged hands as compared to its average daily volume of 13,800 shares. The stock ranged in price between $10.91-$11.24 after having opened the day at $11.24 as compared to the previous trading day's close of $11.45.

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 $141.0 million and is part of the consumer goods sector. Shares are up 11.5% year-to-date as of the close of trading on Wednesday.

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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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China Auto Logistics ( CALI) was another company that pushed the Specialty Retail industry lower today. China Auto Logistics was down $0.07 (3.1%) to $2.16 on average volume. Throughout the day, 22,807 shares of China Auto Logistics exchanged hands as compared to its average daily volume of 23,600 shares. The stock ranged in price between $2.06-$2.38 after having opened the day at $2.20 as compared to the previous trading day's close of $2.23.

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 $8.7 million and is part of the consumer goods sector. Shares are down 39.6% year-to-date as of the close of trading on Wednesday.

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

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