Trade-Ideas LLC identified

BGC Partners

(

BGCP

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified BGC Partners as such a stock due to the following factors:

  • BGCP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.4 million.
  • BGCP has traded 1.5 million shares today.
  • BGCP is up 3.1% today.
  • BGCP was down 5.6% yesterday.

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More details on BGCP:

BGC Partners, Inc. operates as a brokerage company in the United Kingdom, the United States, and internationally. It operates in two segments, Financial Services and Real Estate Services. The stock currently has a dividend yield of 6.1%. BGCP has a PE ratio of 54. Currently there is 1 analyst that rates BGC Partners a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for BGC Partners has been 1.3 million shares per day over the past 30 days. BGC has a market cap of $2.0 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.37 and a short float of 2.7% with 2.41 days to cover. Shares are down 4.9% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates BGC Partners as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, impressive record of earnings per share growth and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • BGCP's very impressive revenue growth greatly exceeded the industry average of 5.7%. Since the same quarter one year prior, revenues leaped by 57.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 432.1% when compared to the same quarter one year prior, rising from $7.21 million to $38.37 million.
  • Net operating cash flow has significantly increased by 157.89% to $133.25 million when compared to the same quarter last year. Despite an increase in cash flow of 157.89%, BGC PARTNERS INC is still growing at a significantly lower rate than the industry average of 272.40%.
  • BGC PARTNERS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BGC PARTNERS INC reported lower earnings of $0.02 versus $0.35 in the prior year. This year, the market expects an improvement in earnings ($0.74 versus $0.02).
  • After a year of stock price fluctuations, the net result is that BGCP's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.

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