Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
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 BioMed Realty as such a stock due to the following factors:
- BMR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $27.2 million.
- BMR has traded 634,898 shares today.
- BMR traded in a range 200.6% of the normal price range with a price range of $0.65.
- BMR traded above its daily resistance level (quality: 70 days, meaning that the stock is crossing a resistance level set by the last 70 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 BMR:
BioMed Realty Trust, Inc. operates as a real estate investment trust (REIT) that focuses on providing real estate to the life science industry in the United States. The stock currently has a dividend yield of 5.1%. BMR has a PE ratio of 21. Currently there are 4 analysts that rate BioMed Realty a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for BioMed Realty has been 1.5 million shares per day over the past 30 days. BioMed has a market cap of $4.2 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.15 and a short float of 2.7% with 3.21 days to cover. Shares are down 5% year-to-date as of the close of trading on Tuesday.
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rates BioMed Realty as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 8.9%. Since the same quarter one year prior, revenues slightly increased by 5.6%. 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 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 Real Estate Investment Trusts (REITs) industry and the overall market, BIOMED REALTY TRUST INC's return on equity is below that of both the industry average and the S&P 500.
- BIOMED REALTY TRUST INC's earnings per share declined by 20.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, BIOMED REALTY TRUST INC increased its bottom line by earning $0.98 versus $0.20 in the prior year. For the next year, the market is expecting a contraction of 73.5% in earnings ($0.26 versus $0.98).
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, BMR has underperformed the S&P 500 Index, declining 7.94% from its price level of one year ago. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
- You can view the full BioMed Realty Ratings Report.