Watch Out: Barbarians At The Gate For Concur Technologies (CNQR)

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 or Stephanie Link.

Trade-Ideas LLC identified Concur Technologies ( CNQR) 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 Concur Technologies as such a stock due to the following factors:

  • CNQR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $54.4 million.
  • CNQR has traded 79,941 shares today.
  • CNQR traded in a range 273.1% of the normal price range with a price range of $6.57.
  • CNQR traded above its daily resistance level (quality: 123 days, meaning that the stock is crossing a resistance level set by the last 123 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 CNQR:

Concur Technologies, Inc. provides integrated travel and expense management solutions for companies worldwide. Currently there are 6 analysts that rate Concur Technologies a buy, 2 analysts rate it a sell, and 4 rate it a hold.

The average volume for Concur Technologies has been 633,600 shares per day over the past 30 days. Concur has a market cap of $5.2 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.86 and a short float of 23.7% with 13.00 days to cover. Shares are down 10.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Concur Technologies as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 11.1%. Since the same quarter one year prior, revenues rose by 33.1%. 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.
  • CNQR's debt-to-equity ratio of 0.87 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that CNQR's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.80 is high and demonstrates strong liquidity.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Software industry. The net income has significantly decreased by 632.3% when compared to the same quarter one year ago, falling from -$7.65 million to -$55.98 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Software industry and the overall market, CONCUR TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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