Trade-Ideas LLC identified Chimera Investment ( CIM) 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 Chimera Investment as such a stock due to the following factors:

  • CIM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.0 million.
  • CIM has traded 1.4 million shares today.
  • CIM traded in a range 214.9% of the normal price range with a price range of $0.43.
  • CIM traded above its daily resistance level (quality: 70 days, meaning that the stock is crossing a resistance level set by the last 70 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in CIM with the Ticky from Trade-Ideas. See the FREE profile for CIM NOW at Trade-Ideas

More details on CIM:

Chimera Investment Corporation operates as a real estate investment trust in the United States. The stock currently has a dividend yield of 13.6%. CIM has a PE ratio of 5. Currently there is 1 analyst that rates Chimera Investment a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Chimera Investment has been 2.0 million shares per day over the past 30 days. Chimera Investment has a market cap of $2.9 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.72 and a short float of 1.2% with 1.58 days to cover. Shares are down 11% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Chimera Investment as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and attractive valuation levels. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 9.7%. Since the same quarter one year prior, revenues rose by 38.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, CHIMERA INVESTMENT CORP's return on equity exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for CHIMERA INVESTMENT CORP is currently very high, coming in at 72.80%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, CIM's net profit margin of 61.72% significantly outperformed against the industry.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Real Estate Investment Trusts (REITs) industry average, but is greater than that of the S&P 500. The net income increased by 10.9% when compared to the same quarter one year prior, going from $104.77 million to $116.19 million.
  • CIM has underperformed the S&P 500 Index, declining 16.29% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.