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Trade-Ideas LLC identified

BioMed Realty

(

BMR

) 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 BioMed Realty as such a stock due to the following factors:

  • BMR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $32.5 million.
  • BMR has traded 5.3 million shares today.
  • BMR traded in a range 213.3% of the normal price range with a price range of $0.88.
  • BMR traded above its daily resistance level (quality: 167 days, meaning that the stock is crossing a resistance level set by the last 167 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 BMR:

TheStreet Recommends

BioMed Realty Trust, Inc. operates as a real estate investment trust (REIT) that focuses on providing real estate to the life science industry in the United States. The stock currently has a dividend yield of 5.3%. BMR has a PE ratio of 2. Currently there are 5 analysts that rate BioMed Realty a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for BioMed Realty has been 1.5 million shares per day over the past 30 days. BioMed has a market cap of $4.0 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.57 and a short float of 4.9% with 4.92 days to cover. Shares are down 11% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates BioMed Realty as a

hold

. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, reasonable valuation levels and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Real Estate Investment Trusts (REITs) industry average. The net income increased by 26.5% when compared to the same quarter one year prior, rising from $18.64 million to $23.58 million.
  • BMR, with its decline in revenue, underperformed when compared the industry average of 9.7%. Since the same quarter one year prior, revenues slightly dropped by 7.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • BMR has underperformed the S&P 500 Index, declining 6.78% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • Net operating cash flow has decreased to $55.49 million or 23.60% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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