Trade-Ideas LLC identified RetailMeNot ( SALE) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified RetailMeNot as such a stock due to the following factors:

  • SALE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.2 million.
  • SALE has traded 59,275 shares today.
  • SALE is up 3.1% today.
  • SALE was down 5.3% yesterday.

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More details on SALE:

RetailMeNot, Inc. operates a digital coupon marketplace. Its marketplace connects consumers with retailers and brands. SALE has a PE ratio of 35. Currently there is 1 analyst that rates RetailMeNot a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for RetailMeNot has been 701,200 shares per day over the past 30 days. RetailMeNot has a market cap of $582.0 million and is part of the services sector and media industry. The stock has a beta of -0.65 and a short float of 5.5% with 1.03 days to cover. Shares are down 29.7% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates RetailMeNot as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • 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 Software & Services industry. The net income has significantly decreased by 86.4% when compared to the same quarter one year ago, falling from $2.53 million to $0.34 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Internet Software & Services industry and the overall market, RETAILMENOT INC's return on equity is below that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $7.62 million or 49.54% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The share price of RETAILMENOT INC has not done very well: it is down 24.97% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • SALE, with its decline in revenue, underperformed when compared the industry average of 15.1%. Since the same quarter one year prior, revenues slightly dropped by 7.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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