Trade-Ideas LLC identified

Senior Housing Properties

(

SNH

) 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 Senior Housing Properties as such a stock due to the following factors:

  • SNH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $35.1 million.
  • SNH has traded 1.2 million shares today.
  • SNH traded in a range 207.9% of the normal price range with a price range of $0.58.
  • SNH traded above its daily resistance level (quality: 419 days, meaning that the stock is crossing a resistance level set by the last 419 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 SNH:

Senior Housing Properties Trust, a real estate investment trust (REIT), primarily invests in senior housing properties in the United States. The trust invests in hospitals, nursing homes, senior apartments, independent living properties, and assisted living properties. The stock currently has a dividend yield of 7.8%. SNH has a PE ratio of 41. Currently there are 2 analysts that rate Senior Housing Properties a buy, 2 analysts rate it a sell, and 3 rate it a hold.

The average volume for Senior Housing Properties has been 1.7 million shares per day over the past 30 days. Senior Housing has a market cap of $4.8 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.48 and a short float of 3.1% with 3.24 days to cover. Shares are up 35.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Senior Housing Properties as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • SNH's revenue growth has slightly outpaced the industry average of 12.0%. Since the same quarter one year prior, revenues rose by 13.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • 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, despite the company's weak earnings results. 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.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, SENIOR HOUSING PPTYS TRUST's return on equity is below that of both the industry average and the S&P 500.
  • The gross profit margin for SENIOR HOUSING PPTYS TRUST is currently lower than what is desirable, coming in at 31.70%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 12.09% significantly trails the industry average.

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