dELiA*s, Inc. (NASDAQ:DLIA) stock was traded with an unusually high volume on Tuesday, which marks rising interest and the possible end of the consolidation period.The previous downwards action stopped right after quarterly earnings were filed on June 9, 2010 and the stock could be making a positive move soon. The distribution was needed for the seller to take profits and for a new wave of buyers to build confidence after the financial results came in.
Last quarter results brought in some disappointment, but the penny stock was already priced low in anticipation, so no selloff occurred.[BANNER]
- Revenues decreased 4% compared to Q1 2009
- Net loss increased 37%
- Cash position deteriorated accordingly, getting to the alarmingly low level of $26 million
- Short term debt level went down to $42 million;
- Quick ratio improved to 1.80
- P/S at low 0.21 below industry’s average 0.59 as suggested by Yahoo
- The P/B ratio of 0.46 suggests the market cap is only half the net tangible worth
All in all, there is no sustained growth, but the stock price could get higher on the short term due to strong balance sheet and no external financing required for another year. The low cash position is still pointing to the need for additional funds in the coming one to two years, if revenues will fail to increase.
