Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (TheStreet) -- PharmAthene (AMEX:PIP) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and disappointing return on equity.
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Highlights from the ratings report include:
■ PHARMATHENE INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, PHARMATHENE INC reported poor results of -$0.10 versus -$0.07 in the prior year. For the next year, the market is expecting a contraction of 240.0% in earnings (-$0.34 versus -$0.10).
■ 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 Biotechnology industry. The net income has significantly decreased by 269.6% when compared to the same quarter one year ago, falling from $0.75 million to -$1.27 million.
■ Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the