Trade-Ideas LLC identified

Liberty Property

(

LPT

) 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 Property as such a stock due to the following factors:

  • LPT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $35.7 million.
  • LPT has traded 1.2 million shares today.
  • LPT traded in a range 218.5% of the normal price range with a price range of $1.19.
  • LPT traded below its daily resistance level (quality: 7 days, meaning that the stock is crossing a resistance level set by the last 7 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in LPT with the Ticky from Trade-Ideas. See the FREE profile for LPT NOW at Trade-Ideas

More details on LPT:

Liberty Property Trust is a publicly owned real estate investment holding trust. Through its subsidiary, it provides leasing, property management, development, acquisition, and other tenant-related services for a portfolio of industrial and office properties. The stock currently has a dividend yield of 4.6%. LPT has a PE ratio of 23. Currently there are no analysts that rate Liberty Property a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Liberty Property has been 917,700 shares per day over the past 30 days. Liberty Property has a market cap of $6.0 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.86 and a short float of 2.4% with 2.27 days to cover. Shares are up 32.8% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Liberty Property as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, reasonable valuation levels, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:

  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 86.0% when compared to the same quarter one year prior, rising from $30.95 million to $57.55 million.
  • 45.95% is the gross profit margin for LIBERTY PROPERTY TRUST which we consider to be strong. 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 28.82% trails the industry average.
  • Net operating cash flow has slightly increased to $96.81 million or 7.59% when compared to the same quarter last year. Despite an increase in cash flow, LIBERTY PROPERTY TRUST's average is still marginally south of the industry average growth rate of 9.08%.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.