3 Stocks Pushing The Real Estate Industry Lower

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The Real Estate industry as a whole closed the day up 1.1% versus the S&P 500, which was up 0.5%. Laggards within the Real Estate industry included Roberts Realty Investors ( RPI), down 8.2%, Vestin Realty Mortgage I ( VRTA), down 2.5%, Income Opportunity Realty Investors ( IOT), down 2.1%, Supertel Hospitality ( SPPR), down 2.4% and IFM Investments ( CTC), down 3.9%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

FelCor Lodging ( FCH) is one of the companies that pushed the Real Estate industry lower today. FelCor Lodging was down $0.26 (2.4%) to $10.61 on average volume. Throughout the day, 717,408 shares of FelCor Lodging exchanged hands as compared to its average daily volume of 551,500 shares. The stock ranged in price between $10.55-$10.92 after having opened the day at $10.90 as compared to the previous trading day's close of $10.87.

FelCor Lodging Trust Incorporated is a publicly owned real estate investment trust. The firm engages in investment and management of properties in the hospitality industry. It invests in the real estate markets of the United States. FelCor Lodging has a market cap of $1.3 billion and is part of the financial sector. Shares are up 33.2% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate FelCor Lodging a buy, 1 analyst rates it a sell, and 3 rate it a hold.

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TheStreet Ratings rates FelCor Lodging as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from TheStreet Ratings analysis on FCH go as follows:

  • Powered by its strong earnings growth of 141.37% and other important driving factors, this stock has surged by 76.26% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • FELCOR LODGING TRUST 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 two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, FELCOR LODGING TRUST INC continued to lose money by earning -$0.96 versus -$1.81 in the prior year. This year, the market expects an improvement in earnings (-$0.45 versus -$0.96).
  • 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, FELCOR LODGING TRUST INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for FELCOR LODGING TRUST INC is currently extremely low, coming in at 12.87%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, FCH's net profit margin of 9.25% is significantly lower than the industry average.

You can view the full analysis from the report here: FelCor Lodging Ratings Report

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At the close, IFM Investments ( CTC) was down $0.07 (3.9%) to $1.71 on average volume. Throughout the day, 48,981 shares of IFM Investments exchanged hands as compared to its average daily volume of 55,400 shares. The stock ranged in price between $1.70-$1.78 after having opened the day at $1.70 as compared to the previous trading day's close of $1.78.

IFM Investments Limited, through its subsidiaries, provides real estate services in the People's Republic of China. It operates through four segments: Company-Owned Brokerage Services, Franchise Services, Mortgage Management Services, and Primary and Commercial Services. IFM Investments has a market cap of $26.8 million and is part of the financial sector. Shares are down 13.2% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates IFM Investments as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on CTC go as follows:

  • IFM INVESTMENTS LTD has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, IFM INVESTMENTS LTD reported poor results of -$0.92 versus -$0.57 in the prior year.
  • 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 Real Estate Management & Development industry. The net income has significantly decreased by 981.5% when compared to the same quarter one year ago, falling from $0.87 million to -$7.63 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Real Estate Management & Development industry and the overall market, IFM INVESTMENTS LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 35.15%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 950.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The revenue fell significantly faster than the industry average of 10.2%. Since the same quarter one year prior, revenues fell by 48.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

You can view the full analysis from the report here: IFM Investments Ratings Report

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

Supertel Hospitality ( SPPR) was another company that pushed the Real Estate industry lower today. Supertel Hospitality was down $0.05 (2.4%) to $2.00 on light volume. Throughout the day, 18,591 shares of Supertel Hospitality exchanged hands as compared to its average daily volume of 41,400 shares. The stock ranged in price between $2.00-$2.05 after having opened the day at $2.05 as compared to the previous trading day's close of $2.05.

Supertel Hospitality, Inc. is an independent equity real estate investment trust. The firm invests in the real estate markets of the United States. It primarily invests in limited-service hotels. The firm was formerly known as Humphrey Hospitality Trust, Inc. Supertel Hospitality, Inc. Supertel Hospitality has a market cap of $6.3 million and is part of the financial sector. Shares are down 16.0% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Supertel Hospitality as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on SPPR go as follows:

  • SPPR's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 66.93%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • 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, SUPERTEL HOSPITALITY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • SPPR, with its decline in revenue, underperformed when compared the industry average of 10.1%. Since the same quarter one year prior, revenues slightly dropped by 0.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Net operating cash flow has significantly increased by 53.28% to -$0.18 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 8.29%.
  • SUPERTEL HOSPITALITY 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 two years. During the past fiscal year, SUPERTEL HOSPITALITY INC continued to lose money by earning -$1.38 versus -$4.96 in the prior year.

You can view the full analysis from the report here: Supertel Hospitality Ratings Report

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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