3 Stocks Pushing The Technology Sector Lower

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.

The Technology sector as a whole closed the day down 0.6% versus the S&P 500, which was down 0.3%. Laggards within the Technology sector included Bridgeline Digital ( BLIN), down 2.7%, TigerLogic ( TIGR), down 3.5%, TSR ( TSRI), down 1.9%, Wells-Gardner Electronic ( WGA), down 3.3% and Aetrium ( ATRM), down 3.6%.

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

SK Telecom ( SKM) is one of the companies that pushed the Technology sector lower today. SK Telecom was down $0.70 (2.3%) to $30.34 on average volume. Throughout the day, 955,307 shares of SK Telecom exchanged hands as compared to its average daily volume of 956,000 shares. The stock ranged in price between $30.29-$30.67 after having opened the day at $30.57 as compared to the previous trading day's close of $31.04.

SK Telecom Co., Ltd. provides wireless telecommunications services in Korea. SK Telecom has a market cap of $19.7 billion and is part of the telecommunications industry. Shares are up 26.1% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate SK Telecom a buy, no analysts rate it a sell, and none rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates SK Telecom as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on SKM go as follows:

  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 38.94% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SKM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • SK TELECOM CO LTD has improved earnings per share by 23.8% 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. During the past fiscal year, SK TELECOM CO LTD increased its bottom line by earning $2.17 versus $1.84 in the prior year. This year, the market expects an improvement in earnings ($2.23 versus $2.17).
  • The revenue growth significantly trails the industry average of 60.8%. Since the same quarter one year prior, revenues rose by 27.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Net operating cash flow has significantly increased by 66.22% to $994.45 million when compared to the same quarter last year. In addition, SK TELECOM CO LTD has also vastly surpassed the industry average cash flow growth rate of 4.62%.

You can view the full analysis from the report here: SK Telecom 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.

At the close, Aetrium ( ATRM) was down $0.16 (3.6%) to $4.30 on light volume. Throughout the day, 973 shares of Aetrium exchanged hands as compared to its average daily volume of 6,500 shares. The stock ranged in price between $4.30-$4.42 after having opened the day at $4.42 as compared to the previous trading day's close of $4.46.

Aetrium has a market cap of $4.8 million and is part of the telecommunications industry. Shares are down 33.2% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Bridgeline Digital ( BLIN) was another company that pushed the Technology sector lower today. Bridgeline Digital was down $0.02 (2.7%) to $0.65 on light volume. Throughout the day, 7,573 shares of Bridgeline Digital exchanged hands as compared to its average daily volume of 28,500 shares. The stock ranged in price between $0.65-$0.67 after having opened the day at $0.67 as compared to the previous trading day's close of $0.67.

Bridgeline Digital, Inc. develops iAPPS Web engagement management product platform and related digital solutions in the United States. Its iAPPS platform enables companies and developers to create Websites, Web applications, and online stores. Bridgeline Digital has a market cap of $14.2 million and is part of the telecommunications industry. Shares are down 37.0% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Bridgeline Digital a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Bridgeline Digital as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on BLIN 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 Internet Software & Services industry and the overall market, BRIDGELINE DIGITAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • BLIN'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 33.99%, 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.
  • BRIDGELINE DIGITAL INC has improved earnings per share by 40.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, BRIDGELINE DIGITAL INC reported poor results of -$0.23 versus -$0.07 in the prior year. For the next year, the market is expecting a contraction of 26.1% in earnings (-$0.29 versus -$0.23).
  • Despite currently having a low debt-to-equity ratio of 0.31, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.95 is weak.
  • Net operating cash flow has increased to -$1.22 million or 14.87% when compared to the same quarter last year. Despite an increase in cash flow, BRIDGELINE DIGITAL INC's cash flow growth rate is still lower than the industry average growth rate of 41.40%.

You can view the full analysis from the report here: Bridgeline Digital 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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