Trade-Ideas LLC identified Macquarie Infrastructure ( MIC) 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 Macquarie Infrastructure as such a stock due to the following factors:

  • MIC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $39.7 million.
  • MIC has traded 620,172 shares today.
  • MIC traded in a range 357.1% of the normal price range with a price range of $4.35.
  • MIC traded below its daily resistance level (quality: 326 days, meaning that the stock is crossing a resistance level set by the last 326 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 MIC:

Macquarie Infrastructure Company LLC, through its subsidiaries, owns, operates, and invests in infrastructure businesses that provide services to businesses and individuals primarily in the United States. The stock currently has a dividend yield of 6%. Currently there are 6 analysts that rate Macquarie Infrastructure a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Macquarie Infrastructure has been 591,900 shares per day over the past 30 days. Macquarie Infrastructure has a market cap of $6.0 billion and is part of the services sector and transportation industry. The stock has a beta of 0.81 and a short float of 4.1% with 5.12 days to cover. Shares are up 3.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Macquarie Infrastructure as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • MIC's revenue growth has slightly outpaced the industry average of 3.9%. Since the same quarter one year prior, revenues slightly increased by 7.0%. 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.
  • The gross profit margin for MACQUARIE INFRASTRUCTURE CP is rather high; currently it is at 56.85%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 2.55% trails the industry average.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • MIC's debt-to-equity ratio of 0.92 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. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.77 is weak.
  • MACQUARIE INFRASTRUCTURE CP 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, MACQUARIE INFRASTRUCTURE CP increased its bottom line by earning $14.70 versus $0.60 in the prior year. For the next year, the market is expecting a contraction of 109.1% in earnings (-$1.33 versus $14.70).

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