Trade-Ideas LLC identified

Cinemark Holdings

(

CNK

) 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 Cinemark Holdings as such a stock due to the following factors:

  • CNK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.3 million.
  • CNK has traded 818,143 shares today.
  • CNK traded in a range 207.5% of the normal price range with a price range of $1.48.
  • CNK traded above its daily resistance level (quality: 21 days, meaning that the stock is crossing a resistance level set by the last 21 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 CNK:

Cinemark Holdings, Inc., together with its subsidiaries, engages in the motion picture exhibition business. It operates in the theatres in the United States, Brazil, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, Bolivia, and Curacao. The stock currently has a dividend yield of 3.2%. CNK has a PE ratio of 17. Currently there are 9 analysts that rate Cinemark Holdings a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Cinemark Holdings has been 573,000 shares per day over the past 30 days. Cinemark has a market cap of $3.9 billion and is part of the services sector and media industry. The stock has a beta of 1.29 and a short float of 4.2% with 8.85 days to cover. Shares are down 1.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cinemark Holdings as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, impressive record of earnings per share growth and compelling growth in net income. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • CNK's revenue growth has slightly outpaced the industry average of 4.6%. Since the same quarter one year prior, revenues slightly increased by 9.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CINEMARK HOLDINGS INC has improved earnings per share by 35.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CINEMARK HOLDINGS INC increased its bottom line by earning $1.88 versus $1.67 in the prior year. This year, the market expects an improvement in earnings ($2.00 versus $1.88).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 37.6% when compared to the same quarter one year prior, rising from $42.52 million to $58.53 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Media industry and the overall market, CINEMARK HOLDINGS INC's return on equity exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 169.62% to $67.71 million when compared to the same quarter last year. In addition, CINEMARK HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of 3.24%.

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