DISH Network (DISH) Marked As A Barbarian At The Gate

Trade-Ideas LLC identified DISH Network (DISH) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

DISH Network

(

DISH

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified DISH Network as such a stock due to the following factors:

  • DISH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $82.4 million.
  • DISH has traded 1.3 million shares today.
  • DISH traded in a range 217.8% of the normal price range with a price range of $2.59.
  • DISH traded above its daily resistance level (quality: 5 days, meaning that the stock is crossing a resistance level set by the last 5 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on DISH:

DISH Network Corporation, together with its subsidiaries, provides pay-TV services in the United States. The company operates through two segments, DISH and Wireless. The company provides video services under the DISH brand. DISH has a PE ratio of 24. Currently there are 2 analysts that rate DISH Network a buy, 2 analysts rate it a sell, and 8 rate it a hold.

The average volume for DISH Network has been 3.1 million shares per day over the past 30 days. DISH Network has a market cap of $24.2 billion and is part of the services sector and media industry. The stock has a beta of 1.34 and a short float of 4.8% with 3.48 days to cover. Shares are down 9.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates DISH Network as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and generally higher debt management risk.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Media industry average. The net income increased by 10.8% when compared to the same quarter one year prior, going from $351.49 million to $389.29 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 4.2%. Since the same quarter one year prior, revenues slightly increased by 1.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Net operating cash flow has slightly increased to $903.20 million or 1.30% when compared to the same quarter last year. Despite an increase in cash flow, DISH NETWORK CORP's average is still marginally south of the industry average growth rate of 3.19%.
  • DISH has underperformed the S&P 500 Index, declining 23.60% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • The debt-to-equity ratio is very high at 3.92 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.44, which clearly demonstrates the inability to cover short-term cash needs.

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