Trade-Ideas LLC identified

Liberty Media Corporation

(

LMCK

) 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 Liberty Media Corporation as such a stock due to the following factors:

  • LMCK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $19.9 million.
  • LMCK has traded 132,347 shares today.
  • LMCK traded in a range 239.2% of the normal price range with a price range of $1.65.
  • LMCK traded above its daily resistance level (quality: 195 days, meaning that the stock is crossing a resistance level set by the last 195 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 LMCK:

TheStreet Recommends

Liberty Media Corporation, through its subsidiaries, engages in the media, communications, and entertainment businesses primarily in North America. LMCK has a PE ratio of 9. Currently there are 2 analysts that rate Liberty Media Corporation a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Liberty Media Corporation has been 833,700 shares per day over the past 30 days. Liberty Media has a market cap of $8.7 billion and is part of the services sector and media industry. Shares are up 9.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Liberty Media Corporation as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Media industry average. The net income increased by 22.0% when compared to the same quarter one year prior, going from $50.00 million to $61.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 6.8%. Since the same quarter one year prior, revenues slightly increased by 5.3%. 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.
  • The current debt-to-equity ratio, 0.59, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.39 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • LIBERTY MEDIA 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. 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, LIBERTY MEDIA CORP reported lower earnings of $0.92 versus $72.81 in the prior year. This year, the market expects an improvement in earnings ($1.99 versus $0.92).
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Media industry and the overall market, LIBERTY MEDIA CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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