Trade-Ideas LLC identified

DDR

(

DDR

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

  • DDR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $57.0 million.
  • DDR has traded 5.1 million shares today.
  • DDR traded in a range 211.3% of the normal price range with a price range of $0.70.
  • DDR traded below its daily resistance level (quality: 529 days, meaning that the stock is crossing a resistance level set by the last 529 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 DDR with the Ticky from Trade-Ideas. See the FREE profile for DDR NOW at Trade-Ideas

More details on DDR:

TheStreet Recommends

DDR Corp. is an equity real estate investment trust. It invests in the real estate markets of the United States and Puerto Rico. The firm is in the business of acquiring, owning, developing, redeveloping, expanding, leasing and managing shopping centers. The stock currently has a dividend yield of 4.2%. Currently there are 8 analysts that rate DDR a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for DDR has been 3.8 million shares per day over the past 30 days. DDR has a market cap of $5.9 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.69 and a short float of 6.3% with 3.68 days to cover. Shares are down 14.8% 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 DDR as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth 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:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.7%. Since the same quarter one year prior, revenues slightly increased by 8.1%. 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.
  • Net operating cash flow has increased to $146.17 million or 33.90% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 15.86%.
  • DDR CORP 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, DDR CORP turned its bottom line around by earning $0.00 versus -$0.05 in the prior year. This year, the market expects a decline in earnings from $0.00 to -$0.60.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 75.5% when compared to the same quarter one year ago, falling from $76.02 million to $18.60 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, DDR CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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.