3 Stocks Pushing The Specialty Retail Industry Lower

The Specialty Retail industry as a whole closed the day down 1.1% versus the S&P 500, which was down 1.0%. Laggards within the Specialty Retail industry included DGSE Companies ( DGSE), down 12.7%, Mecox Lane ( MCOX), down 6.9%, China Auto Logistics ( CALI), down 7.5%, Odyssey Marine Exploration ( OMEX), down 6.3% and PCM ( PCMI), down 4.2%.

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

Odyssey Marine Exploration ( OMEX) is one of the companies that pushed the Specialty Retail industry lower today. Odyssey Marine Exploration was down $0.02 (6.3%) to $0.36 on light volume. Throughout the day, 94,676 shares of Odyssey Marine Exploration exchanged hands as compared to its average daily volume of 265,600 shares. The stock ranged in price between $0.36-$0.40 after having opened the day at $0.39 as compared to the previous trading day's close of $0.39.

Odyssey Marine Exploration, Inc., together with its subsidiaries, engages in the seafloor mineral exploration, and search and recovery of deep-ocean shipwrecks worldwide. Odyssey Marine Exploration has a market cap of $30.1 million and is part of the services sector. Shares are down 58.4% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Odyssey Marine Exploration a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Odyssey Marine Exploration as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on OMEX go as follows:

  • OMEX'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 69.03%, 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.
  • OMEX, with its very weak revenue results, has greatly underperformed against the industry average of 4.4%. Since the same quarter one year prior, revenues plummeted by 79.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • ODYSSEY MARINE EXPLORATION has improved earnings per share by 8.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ODYSSEY MARINE EXPLORATION reported poor results of -$0.32 versus -$0.14 in the prior year. This year, the market expects an improvement in earnings (-$0.20 versus -$0.32).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Professional Services industry average. The net income increased by 0.9% when compared to the same quarter one year prior, going from -$9.80 million to -$9.71 million.
  • Net operating cash flow has significantly increased by 57.63% to -$4.31 million when compared to the same quarter last year. In addition, ODYSSEY MARINE EXPLORATION has also vastly surpassed the industry average cash flow growth rate of 2.56%.

You can view the full analysis from the report here: Odyssey Marine Exploration Ratings Report

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At the close, China Auto Logistics ( CALI) was down $0.08 (7.5%) to $0.98 on light volume. Throughout the day, 400 shares of China Auto Logistics exchanged hands as compared to its average daily volume of 34,300 shares. The stock ranged in price between $0.95-$0.98 after having opened the day at $0.95 as compared to the previous trading day's close of $1.06.

China Auto Logistics Inc. sells and trades in imported automobiles in the People's Republic of China. China Auto Logistics has a market cap of $4.2 million and is part of the services sector. Shares are down 0.9% year-to-date as of the close of trading on Monday.

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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.

Highlights from TheStreet Ratings analysis on CALI go as follows:

  • The debt-to-equity ratio is very high at 5.85 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.50, which clearly demonstrates the inability to cover short-term cash 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 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 0.59%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -3.05% is significantly below that of the industry average.
  • 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 swung to a loss, reporting -$6.66 versus $0.16 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 Specialty Retail industry. The net income has significantly decreased by 98.1% when compared to the same quarter one year ago, falling from -$1.35 million to -$2.67 million.

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

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Mecox Lane ( MCOX) was another company that pushed the Specialty Retail industry lower today. Mecox Lane was down $0.25 (6.9%) to $3.37 on light volume. Throughout the day, 407 shares of Mecox Lane exchanged hands as compared to its average daily volume of 7,600 shares. The stock ranged in price between $3.36-$3.37 after having opened the day at $3.36 as compared to the previous trading day's close of $3.62.

Mecox Lane has a market cap of $44.2 million and is part of the services sector. Shares are down 3.0% year-to-date as of the close of trading on Monday.

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