Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

Do you consider a stock's sales trends when choosing among names? We ran a screen with this idea in mind.

We screened the Internet sphere for stocks with weak sales trends, comparing growth in revenue to growth in accounts receivable. Since accounts receivable is the portion of revenue not yet received, and there is no guarantee the money will ever be received, the smaller the portion of revenue made up of receivables, the healthier the company's revenue.

We screened for stocks seeing slower growth in revenue than accounts receivable year-over-year, as well as accounts receivable comprising a larger portion of current assets over the same time period.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Tool provided by Kapitall (www.kapitall.com).

Do you think these stocks are in hot water? Use this list as a starting point for your own analysis.

List sorted by change in revenue over the last year.

1. ModusLink Global Solutions, Inc. (NASDAQ:MLNK): Provides supply chain business process management solutions worldwide. Market cap at $145.13M, most recent closing price at $3.30. Revenue grew by -23.73% during the most recent quarter ($178.59M vs. $234.15M y/y). Accounts receivable grew by 10.86% during the same time period ($156.19M vs. $140.89M y/y). Receivables, as a percentage of current assets, increased from 36.4% to 43.76% during the most recent quarter (comparing 3 months ending 01-31-2012 to 3 months ending 01-31-2011).

2. Yahoo! Inc. (NASDAQ:YHOO): Operates as a digital media company that delivers personalized digital content and experiences, across devices and worldwide. Market cap at $17.48B, most recent closing price at $14.76. Revenue grew by -0.91% during the most recent quarter ($1,217.79M vs. $1,229.02M y/y). Accounts receivable grew by 8.82% during the same time period ($1,040.89M vs. $956.56M y/y). Receivables, as a percentage of current assets, increased from 24.59% to 31.83% during the most recent quarter (comparing 3 months ending 06-30-2012 to 3 months ending 06-30-2011).

3. ClickSoftware Technologies Ltd. (NASDAQ:CKSW): Provides workforce and service management software products and solutions. Market cap at $233.95M, most recent closing price at $7.42. Revenue grew by 8.76% during the most recent quarter ($22.48M vs. $20.67M y/y). Accounts receivable grew by 28.45% during the same time period ($24.56M vs. $19.12M y/y). Receivables, as a percentage of current assets, increased from 25.04% to 33.01% during the most recent quarter (comparing 3 months ending 06-30-2012 to 3 months ending 06-30-2011).

4. Keynote Systems Inc. (NASDAQ:KEYN): Provides Internet and mobile cloud monitoring solutions worldwide. Market cap at $239M, most recent closing price at $13.48. Revenue grew by 13.88% during the most recent quarter ($30.28M vs. $26.59M y/y). Accounts receivable grew by 27.25% during the same time period ($19.19M vs. $15.08M y/y). Receivables, as a percentage of current assets, increased from 12.94% to 25.48% during the most recent quarter (comparing 3 months ending 06-30-2012 to 3 months ending 06-30-2011).

*Written by Kapitall's Alexander Crawford. Accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: 4 Internet Companies With Troubling Sales Trends