Trade-Ideas LLC identified

Carmike Cinemas

(

CKEC

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Carmike Cinemas as such a stock due to the following factors:

  • CKEC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.2 million.
  • CKEC has traded 533.163999999999987267074175179004669189453125 options contracts today.
  • CKEC is making at least a new 3-day high.
  • CKEC is mentioned 1.32 times per day on StockTwits.
  • CKEC has not yet been mentioned on StockTwits today.
  • CKEC is currently in the upper 20% of its 1-year range.
  • CKEC is in the upper 35% of its 20-day range.
  • CKEC is in the upper 45% of its 5-day range.
  • CKEC is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on CKEC:

Carmike Cinemas, Inc., together with its subsidiaries, operates as a motion picture exhibitor in the United States. The company operates digital cinema and 3-D cinema theatres that show films on a first-run basis; and discount theatres primarily serving mid-size non-urban markets. Currently there are 2 analysts that rate Carmike Cinemas a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Carmike Cinemas has been 707,700 shares per day over the past 30 days. Carmike Cinemas has a market cap of $730.9 million and is part of the services sector and media industry. The stock has a beta of 2.08 and a short float of 5.1% with 5.86 days to cover. Shares are up 29.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Carmike Cinemas as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, poor profit margins and generally higher debt management risk.

Highlights from the ratings report include:

  • CKEC's revenue growth has slightly outpaced the industry average of 3.7%. Since the same quarter one year prior, revenues rose by 11.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CARMIKE CINEMAS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, CARMIKE CINEMAS INC continued to lose money by earning -$0.03 versus -$0.38 in the prior year. This year, the market expects an improvement in earnings ($0.56 versus -$0.03).
  • The gross profit margin for CARMIKE CINEMAS INC is rather low; currently it is at 20.90%. Regardless of CKEC's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, CKEC's net profit margin of 1.07% is significantly lower than the industry average.
  • Net operating cash flow has significantly decreased to $8.89 million or 52.14% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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