Trade-Ideas LLC identified

Simon Property Group

(

SPG

) 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 Simon Property Group as such a stock due to the following factors:

  • SPG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $274.2 million.
  • SPG has traded 261,428 shares today.
  • SPG traded in a range 204.7% of the normal price range with a price range of $9.52.
  • SPG traded below its daily resistance level (quality: 8 days, meaning that the stock is crossing a resistance level set by the last 8 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 SPG:

TST Recommends

Simon Property Group, Inc. is an equity real estate investment trust. The firm invests in the real estate markets across the globe. It engages in investment, ownership, management, and development of properties. The stock currently has a dividend yield of 3.2%. SPG has a PE ratio of 35. Currently there are 14 analysts that rate Simon Property Group a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Simon Property Group has been 1.3 million shares per day over the past 30 days. Simon Property Group has a market cap of $57.6 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.46 and a short float of 1.3% with 2.32 days to cover. Shares are down 3.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Simon Property Group as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • SPG's revenue growth has slightly outpaced the industry average of 6.1%. Since the same quarter one year prior, revenues slightly increased by 7.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, SIMON PROPERTY GROUP INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for SIMON PROPERTY GROUP INC is rather high; currently it is at 58.79%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 30.31% is above that of the industry average.
  • Net operating cash flow has increased to $735.52 million or 11.25% when compared to the same quarter last year. In addition, SIMON PROPERTY GROUP INC has also modestly surpassed the industry average cash flow growth rate of 9.43%.
  • SIMON PROPERTY GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, SIMON PROPERTY GROUP INC increased its bottom line by earning $4.44 versus $3.72 in the prior year. This year, the market expects an improvement in earnings ($5.37 versus $4.44).

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