Liberty Global (LBTYK) Shows Signs Of Being Water-Logged And Getting Wetter
Trade-Ideas LLC identified
(
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Liberty Global as such a stock due to the following factors:
- LBTYK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $149.2 million.
- LBTYK has traded 4.6 million shares today.
- LBTYK traded in a range 202.6% of the normal price range with a price range of $1.55.
- LBTYK traded below its daily resistance level (quality: 16 days, meaning that the stock is crossing a resistance level set by the last 16 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' 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 negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on LBTYK:
Liberty Global plc, together with its subsidiaries, provides video, broadband Internet, fixed-line telephony, and mobile services in Europe, Chile, Puerto Rico, and internationally.
The average volume for Liberty Global has been 3.6 million shares per day over the past 30 days. Liberty Global has a market cap of $26.3 billion and is part of the services sector and media industry. The stock has a beta of 1.64 and a short float of 12.4% with 1.46 days to cover. Shares are down 5.2% year-to-date as of the close of trading on Friday.
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Analysis:
rates Liberty Global as a
. The company's strengths can be seen in multiple areas, such as its expanding profit margins, increase in stock price during the past year and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and weak operating cash flow.
Highlights from the ratings report include:
- The gross profit margin for LIBERTY GLOBAL PLC is rather high; currently it is at 63.55%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -10.17% is in-line with the industry average.
- After a year of stock price fluctuations, the net result is that LBTYK's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- LBTYK, with its decline in revenue, slightly underperformed the industry average of 7.0%. Since the same quarter one year prior, revenues slightly dropped by 0.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Although LBTYK's debt-to-equity ratio of 3.55 is very high, it is currently less than that of the industry average. Along with this, the company manages to maintain a quick ratio of 0.27, which clearly demonstrates the inability to cover short-term cash needs.
- Net operating cash flow has decreased to $1,311.90 million or 17.81% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full Liberty Global Ratings Report.
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