Trade-Ideas LLC identified Infoblox ( BLOX) as a "dead cat bounce" (down big yesterday but up 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 $12.4 million.
  • BLOX has traded 285,691 shares today.
  • BLOX is up 3.8% today.
  • BLOX was down 10.7% 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 5 analysts that rate Infoblox a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Infoblox has been 783,600 shares per day over the past 30 days. Infoblox has a market cap of $940.7 million and is part of the technology sector and telecommunications industry. The stock has a beta of 0.64 and a short float of 6.2% with 4.30 days to cover. Shares are down 30.4% year-to-date as of the close of trading on Tuesday.

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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 generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • After a year of stock price fluctuations, the net result is that BLOX's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 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 ($0.30 versus -$0.48).
  • The gross profit margin for INFOBLOX INC is currently very high, coming in at 78.96%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -5.43% is in-line with the industry average.
  • Net operating cash flow has slightly increased to $4.45 million or 3.60% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -8.89%.

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