Trade-Ideas LLC identified

FelCor Lodging

(

FCH

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified FelCor Lodging as such a stock due to the following factors:

  • FCH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.0 million.
  • FCH has traded 242,926 shares today.
  • FCH is trading at 4.00 times the normal volume for the stock at this time of day.
  • FCH is trading at a new high 8.10% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on FCH:

TheStreet Recommends

FelCor Lodging Trust Incorporated is a publicly owned real estate investment trust. The firm engages in investment and management of properties in the hospitality industry. It invests in the real estate markets of the United States. The stock currently has a dividend yield of 3.9%. Currently there is 1 analyst that rates FelCor Lodging a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for FelCor Lodging has been 1.6 million shares per day over the past 30 days. FelCor has a market cap of $939.2 million and is part of the financial sector and real estate industry. The stock has a beta of 2.00 and a short float of 7.7% with 4.31 days to cover. Shares are down 10.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates FelCor Lodging as a

hold

. Among the primary strengths of the company is its generally strong cash flow from operations. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • Net operating cash flow has increased to $45.11 million or 34.49% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 9.43%.
  • FCH, with its decline in revenue, underperformed when compared the industry average of 6.1%. Since the same quarter one year prior, revenues slightly dropped by 4.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • FELCOR LODGING TRUST INC 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 company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, FELCOR LODGING TRUST INC turned its bottom line around by earning $0.43 versus -$0.95 in the prior year. For the next year, the market is expecting a contraction of 167.4% in earnings (-$0.29 versus $0.43).
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, FELCOR LODGING TRUST INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for FELCOR LODGING TRUST INC is currently extremely low, coming in at 6.02%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -3.64% is significantly below that of the industry average.

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