Trade-Ideas LLC identified Orbitz Worldwide ( OWW) 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 Orbitz Worldwide as such a stock due to the following factors:

  • OWW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $27.7 million.
  • OWW has traded 1.6 million shares today.
  • OWW traded in a range 435.9% of the normal price range with a price range of $0.68.
  • OWW traded above its daily resistance level (quality: 530 days, meaning that the stock is crossing a resistance level set by the last 530 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 OWW:

Orbitz Worldwide, Inc. operates as an online travel company worldwide. Currently there are no analysts that rate Orbitz Worldwide a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Orbitz Worldwide has been 2.8 million shares per day over the past 30 days. Orbitz Worldwide has a market cap of $1.3 billion and is part of the services sector and leisure industry. The stock has a beta of 1.08 and a short float of 22.2% with 8.22 days to cover. Shares are up 36.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Orbitz Worldwide as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, OWW's share price has jumped by 34.69%, exceeding the performance of the broader market during that same time frame. 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.
  • The gross profit margin for ORBITZ WORLDWIDE INC is currently very high, coming in at 73.33%. Regardless of OWW'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 -1.77% trails the industry average.
  • The revenue fell significantly faster than the industry average of 34.0%. Since the same quarter one year prior, revenues slightly dropped by 3.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • 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 Internet & Catalog Retail industry. The net income has significantly decreased by 161.8% when compared to the same quarter one year ago, falling from $6.88 million to -$4.25 million.
  • Net operating cash flow has significantly decreased to $9.51 million or 80.84% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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