BioMed Realty (BMR) Marked As A Barbarian At The Gate

Trade-Ideas LLC identified BioMed Realty ( BMR) 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 BioMed Realty as such a stock due to the following factors:

  • BMR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $107.6 million.
  • BMR has traded 7.4 million shares today.
  • BMR traded in a range 356% of the normal price range with a price range of $0.20.
  • BMR traded above its daily resistance level (quality: 348 days, meaning that the stock is crossing a resistance level set by the last 348 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 BMR:

BioMed Realty Trust, Inc. operates as a real estate investment trust (REIT) that focuses on providing real estate to the life science industry in the United States. The stock currently has a dividend yield of 4.4%. BMR has a PE ratio of 23. Currently there are no analysts that rate BioMed Realty a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for BioMed Realty has been 3.6 million shares per day over the past 30 days. BioMed has a market cap of $4.8 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.74 and a short float of 0.7% with 0.25 days to cover. Shares are up 0.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates BioMed Realty as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and reasonable valuation levels. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 76.7% when compared to the same quarter one year prior, rising from $15.96 million to $28.20 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 6.1%. Since the same quarter one year prior, revenues slightly increased by 2.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Net operating cash flow has slightly increased to $74.40 million or 1.22% when compared to the same quarter last year. Despite an increase in cash flow, BIOMED REALTY TRUST INC's average is still marginally south of the industry average growth rate of 9.39%.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, BIOMED REALTY TRUST INC's return on equity is below that of both the industry average and the S&P 500.
  • The gross profit margin for BIOMED REALTY TRUST INC is currently lower than what is desirable, coming in at 27.25%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 16.15% significantly trails the industry average.

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