Trade-Ideas LLC identified

Great Plains Energy

(

GXP

) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Great Plains Energy as such a stock due to the following factors:

  • GXP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $43.4 million.
  • GXP has traded 368,636 shares today.
  • GXP traded in a range 202.7% of the normal price range with a price range of $1.15.
  • GXP traded below its daily resistance level (quality: 36 days, meaning that the stock is crossing a resistance level set by the last 36 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' 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 negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on GXP:

Great Plains Energy Incorporated, through its subsidiaries, generates, transmits, distributes, and sells electricity in the United States. It also provides regulated steam services in St. Joseph, Missouri. The stock currently has a dividend yield of 3.9%. GXP has a PE ratio of 2. Currently there is 1 analyst that rates Great Plains Energy a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for Great Plains Energy has been 1.2 million shares per day over the past 30 days. Great Plains Energy has a market cap of $4.2 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.51 and a short float of 2.4% with 2.19 days to cover. Shares are down 0.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Great Plains Energy as a

buy

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • Net operating cash flow has remained constant at $390.60 million with no significant change when compared to the same quarter last year. In addition, GREAT PLAINS ENERGY INC has modestly surpassed the industry average cash flow growth rate of -0.08%.
  • 43.40% is the gross profit margin for GREAT PLAINS ENERGY INC which we consider to be strong. Regardless of GXP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 16.22% trails the industry average.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 0.6%. Since the same quarter one year prior, revenues slightly dropped by 0.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Even though the current debt-to-equity ratio is 1.11, it is still below the industry average, suggesting that this level of debt is acceptable within the Electric Utilities industry. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.36 is very low and demonstrates very weak liquidity.
  • 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. When compared to other companies in the Electric Utilities industry and the overall market, GREAT PLAINS ENERGY INC's return on equity is below that of both the industry average and the S&P 500.

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