Trade-Ideas LLC identified

Platform Specialty Products

(

PAH

) 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 Platform Specialty Products as such a stock due to the following factors:

  • PAH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $38.3 million.
  • PAH has traded 1.4 million shares today.
  • PAH traded in a range 218.9% of the normal price range with a price range of $1.73.
  • PAH traded above its daily resistance level (quality: 2 days, meaning that the stock is crossing a resistance level set by the last 2 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 PAH:

Platform Specialty Products Corporation produces and sells specialty chemical products in the Americas, Asia, and Europe. Currently there is 1 analyst that rates Platform Specialty Products a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Platform Specialty Products has been 4.4 million shares per day over the past 30 days. Platform Specialty has a market cap of $1.9 billion and is part of the basic materials sector and chemicals industry. Shares are down 37.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Platform Specialty Products as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • 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 Chemicals industry. The net income has significantly decreased by 1129.4% when compared to the same quarter one year ago, falling from $11.87 million to -$122.20 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 54.09%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 825.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • PLATFORM SPECIALTY PRODUCTS has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This year, the market expects an improvement in earnings ($0.63 versus -$1.58).
  • The gross profit margin for PLATFORM SPECIALTY PRODUCTS is rather high; currently it is at 51.64%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, PAH's net profit margin of -20.45% significantly underperformed when compared to the industry average.
  • Net operating cash flow has slightly increased to $30.80 million or 1.84% when compared to the same quarter last year. Despite an increase in cash flow, PLATFORM SPECIALTY PRODUCTS's average is still marginally south of the industry average growth rate of 10.16%.

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