Trade-Ideas LLC identified Infoblox ( BLOX) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Infoblox as such a stock due to the following factors:

  • BLOX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.5 million.
  • BLOX has traded 246,119 shares today.
  • BLOX is down 3.1% today.
  • BLOX was up 5.5% yesterday.

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More details on BLOX:

Infoblox Inc., together with its subsidiaries, designs, develops, manufactures, and sells network control solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Currently there are 4 analysts that rate Infoblox a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Infoblox has been 856,600 shares per day over the past 30 days. Infoblox has a market cap of $950.3 million and is part of the technology sector and telecommunications industry. The stock has a beta of 1.02 and a short float of 6.7% with 4.81 days to cover. Shares are down 15.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Infoblox as a sell. The area that we feel has been the company's primary weakness has been its disappointing return on equity.

Highlights from the ratings report include:
  • 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. Compared to other companies in the Software industry and the overall market, INFOBLOX INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • INFOBLOX INC reported significant earnings per share improvement 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, INFOBLOX INC reported poor results of -$0.48 versus -$0.44 in the prior year. This year, the market expects an improvement in earnings ($0.31 versus -$0.48).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 50.4% when compared to the same quarter one year prior, rising from -$9.53 million to -$4.73 million.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, and has traded in line with the S&P 500. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • BLOX 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. Along with this, the company maintains a quick ratio of 2.75, which clearly demonstrates the ability to cover short-term cash needs.

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