Trade-Ideas LLC identified
) 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 Tyco International as such a stock due to the following factors:
- TYC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $131.9 million.
- TYC has traded 14.6 million shares today.
- TYC traded in a range 252.4% of the normal price range with a price range of $2.30.
- TYC traded above its daily resistance level (quality: 53 days, meaning that the stock is crossing a resistance level set by the last 53 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 TYC:
Tyco International plc provides security products and services, fire detection and suppression products and services, and life safety products worldwide. The stock currently has a dividend yield of 2.7%. TYC has a PE ratio of 21. Currently there are 5 analysts that rate Tyco International a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Tyco International has been 3.3 million shares per day over the past 30 days. Tyco International has a market cap of $12.7 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.15 and a short float of 1.1% with 1.07 days to cover. Shares are down 4.1% year-to-date as of the close of trading on Friday.
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rates Tyco International as a
. The company's strengths can be seen in multiple areas, such as its increase in net income, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and disappointing return on equity.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Services & Supplies industry. The net income increased by 174.2% when compared to the same quarter one year prior, rising from -$89.00 million to $66.00 million.
- The debt-to-equity ratio is somewhat low, currently at 0.78, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.85 is somewhat weak and could be cause for future problems.
- 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 Commercial Services & Supplies industry and the overall market on the basis of return on equity, TYCO INTERNATIONAL PLC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- Net operating cash flow has significantly decreased to $29.00 million or 90.06% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full Tyco International Ratings Report.