Trade-Ideas LLC identified

iKang Healthcare Group

(

KANG

) 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 iKang Healthcare Group as such a stock due to the following factors:

  • KANG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.5 million.
  • KANG has traded 1.0 million shares today.
  • KANG traded in a range 219.4% of the normal price range with a price range of $1.08.
  • KANG traded above its daily resistance level (quality: 76 days, meaning that the stock is crossing a resistance level set by the last 76 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 KANG:

iKang Healthcare Group, Inc., together with its subsidiaries, provides preventive healthcare solutions in the People's Republic of China. It operates in two segments, Medical Examinations and Other Medical Services, and Dental Services. KANG has a PE ratio of 39.

The average volume for iKang Healthcare Group has been 727,400 shares per day over the past 30 days. iKang Healthcare Group has a market cap of $1.5 billion and is part of the health care sector and health services industry. Shares are up 2.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates iKang Healthcare Group as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 11.5%. Since the same quarter one year prior, revenues rose by 22.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.67, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.16, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for IKANG HEALTHCARE GROUP -ADR is rather high; currently it is at 56.71%. Regardless of KANG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, KANG's net profit margin of 15.22% significantly outperformed against the industry.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Health Care Providers & Services industry and the overall market, IKANG HEALTHCARE GROUP -ADR's return on equity is below that of both the industry average and the S&P 500.

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