Dupont Fabros Technology (DFT) Marked As A Barbarian At The Gate
Trade-Ideas LLC identified
(
) 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 Dupont Fabros Technology as such a stock due to the following factors:
- DFT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $38.6 million.
- DFT has traded 877,633 shares today.
- DFT traded in a range 214.6% of the normal price range with a price range of $1.80.
- DFT traded above its daily resistance level (quality: 9 days, meaning that the stock is crossing a resistance level set by the last 9 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 DFT:
DuPont Fabros Technology, Inc., a real estate investment trust (REIT), engages in the ownership, acquisition, development, operation, management, and lease of large-scale data center facilities in the United States. The stock currently has a dividend yield of 4%. Currently there are 2 analysts that rate Dupont Fabros Technology a buy, no analysts rate it a sell, and 9 rate it a hold.
The average volume for Dupont Fabros Technology has been 824,200 shares per day over the past 30 days. Dupont Fabros Technology has a market cap of $3.5 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.69 and a short float of 5.3% with 3.73 days to cover. Shares are up 45.6% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Dupont Fabros Technology as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
Highlights from the ratings report include:
- DFT's revenue growth has slightly outpaced the industry average of 11.9%. Since the same quarter one year prior, revenues rose by 15.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 50.00% and other important driving factors, this stock has surged by 55.57% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- Net operating cash flow has slightly increased to $51.34 million or 4.57% when compared to the same quarter last year. Despite an increase in cash flow, DUPONT FABROS TECHNOLOGY INC's average is still marginally south of the industry average growth rate of 11.78%.
- DUPONT FABROS TECHNOLOGY 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, DUPONT FABROS TECHNOLOGY INC swung to a loss, reporting -$0.40 versus $1.19 in the prior year. This year, the market expects an improvement in earnings ($1.53 versus -$0.40).
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, DUPONT FABROS TECHNOLOGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Dupont Fabros Technology Ratings Report.
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