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Trade-Ideas LLC identified

LaSalle Hotel Properties

(

LHO

) 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 LaSalle Hotel Properties as such a stock due to the following factors:

  • LHO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $48.1 million.
  • LHO has traded 755,969 shares today.
  • LHO traded in a range 227.2% of the normal price range with a price range of $1.48.
  • LHO traded above its daily resistance level (quality: 226 days, meaning that the stock is crossing a resistance level set by the last 226 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 LHO:

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TheStreet Recommends

LaSalle Hotel Properties, a real estate investment trust (REIT), engages in the purchase, ownership, redevelopment, and leasing of primarily upscale and luxury full-service hotels in convention, resort, and urban business markets in the United States. The stock currently has a dividend yield of 7%. LHO has a PE ratio of 23. Currently there is 1 analyst that rates LaSalle Hotel Properties a buy, 2 analysts rate it a sell, and 11 rate it a hold.

The average volume for LaSalle Hotel Properties has been 1.6 million shares per day over the past 30 days. LaSalle Hotel has a market cap of $2.9 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.96 and a short float of 18.8% with 6.73 days to cover. Shares are up 3.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates LaSalle Hotel Properties as a

buy

. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had somewhat 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 Real Estate Investment Trusts (REITs) industry. The net income increased by 232.7% when compared to the same quarter one year prior, rising from $2.72 million to $9.06 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 11.8%. Since the same quarter one year prior, revenues slightly increased by 4.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Net operating cash flow has increased to $59.66 million or 14.10% when compared to the same quarter last year. In addition, LASALLE HOTEL PROPERTIES has also modestly surpassed the industry average cash flow growth rate of 11.59%.
  • 35.55% is the gross profit margin for LASALLE HOTEL PROPERTIES which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, LHO's net profit margin of 3.46% significantly trails the industry average.

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