Trade-Ideas LLC identified

Gramercy Property

(

GPT

) 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 Gramercy Property as such a stock due to the following factors:

  • GPT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.6 million.
  • GPT has traded 2.2 million shares today.
  • GPT traded in a range 204.5% of the normal price range with a price range of $0.42.
  • GPT traded above its daily resistance level (quality: 101 days, meaning that the stock is crossing a resistance level set by the last 101 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 GPT:

Gramercy Property Trust, Inc. is an equity real estate investment trust. The firm invests in the real estate markets of the United States. It makes investments in industrial and office properties to create its portfolio. The firm was formerly known as Gramercy Capital Corp. The stock currently has a dividend yield of 5.3%. Currently there are 5 analysts that rate Gramercy Property a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Gramercy Property has been 2.7 million shares per day over the past 30 days. Gramercy Property has a market cap of $3.5 billion and is part of the financial sector and real estate industry. The stock has a beta of -0.24 and a short float of 7.7% with 6.78 days to cover. Shares are up 7.5% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Gramercy Property as a

hold

. Among the primary strengths of the company is its robust revenue growth -- not just in the most recent periods but in previous quarters as well. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • GPT's very impressive revenue growth greatly exceeded the industry average of 7.9%. Since the same quarter one year prior, revenues leaped by 86.1%. 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.
  • GRAMERCY PROPERTY TRUST 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. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, GRAMERCY PROPERTY TRUST swung to a loss, reporting -$0.25 versus $0.64 in the prior year. This year, the market expects an improvement in earnings ($0.04 versus -$0.25).
  • The share price of GRAMERCY PROPERTY TRUST has not done very well: it is down 14.28% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 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 788.1% when compared to the same quarter one year ago, falling from -$5.59 million to -$49.66 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, GRAMERCY PROPERTY TRUST's return on equity significantly trails that of both the industry average and the S&P 500.

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