Trade-Ideas LLC identified

Macquarie Infrastructure

(

MIC

) 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 Macquarie Infrastructure as such a stock due to the following factors:

  • MIC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.1 million.
  • MIC has traded 190,813 shares today.
  • MIC traded in a range 221.1% of the normal price range with a price range of $2.35.
  • MIC traded above its daily resistance level (quality: 269 days, meaning that the stock is crossing a resistance level set by the last 269 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 MIC:

Macquarie Infrastructure Company LLC, through its subsidiaries, owns, operates, and invests in infrastructure businesses that provide services to businesses, government agencies, and individuals primarily in the United States. The stock currently has a dividend yield of 6.3%. MIC has a PE ratio of 692. Currently there are 3 analysts that rate Macquarie Infrastructure a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Macquarie Infrastructure has been 473,900 shares per day over the past 30 days. Macquarie Infrastructure has a market cap of $6.1 billion and is part of the services sector and transportation industry. The stock has a beta of 1.06 and a short float of 3.8% with 8.50 days to cover. Shares are up 5.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Macquarie Infrastructure as a

hold

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and generally higher debt management risk.

Highlights from the ratings report include:

  • Net operating cash flow has increased to $148.57 million or 26.96% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 10.54%.
  • The gross profit margin for MACQUARIE INFRASTRUCTURE CP is rather high; currently it is at 62.28%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, MIC's net profit margin of 5.63% significantly trails the industry average.
  • MACQUARIE INFRASTRUCTURE CP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MACQUARIE INFRASTRUCTURE CP swung to a loss, reporting -$1.48 versus $14.70 in the prior year. This year, the market expects an improvement in earnings ($1.63 versus -$1.48).
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Transportation Infrastructure industry and the overall market, MACQUARIE INFRASTRUCTURE CP's return on equity significantly trails that of both the industry average and the S&P 500.
  • MIC has underperformed the S&P 500 Index, declining 7.59% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.

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