Trade-Ideas LLC identified SkyPeople Fruit Juice ( SPU) 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 SkyPeople Fruit Juice as such a stock due to the following factors:

  • SPU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.2 million.
  • SPU has traded 1.0 million shares today.
  • SPU traded in a range 241.3% of the normal price range with a price range of $3.13.
  • SPU traded above its daily resistance level (quality: 394 days, meaning that the stock is crossing a resistance level set by the last 394 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 SPU with the Ticky from Trade-Ideas. See the FREE profile for SPU NOW at Trade-Ideas

More details on SPU:

SkyPeople Fruit Juice, Inc., through its subsidiaries, produces and sells fruit juice concentrates, fruit beverages, and other fruit-related products in the People's Republic of China and internationally. SPU has a PE ratio of 3.

The average volume for SkyPeople Fruit Juice has been 390,800 shares per day over the past 30 days. SkyPeople Fruit Juice has a market cap of $20.9 million and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.10 and a short float of 1.2% with 0.03 days to cover. Shares are up 1157.3% 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 SkyPeople Fruit Juice 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 the ratings report include:
  • SKYPEOPLE FRUIT JUICE INC 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 reported a trend of declining earnings per share over the past two years. During the past fiscal year, SKYPEOPLE FRUIT JUICE INC reported lower earnings of $2.32 versus $3.60 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 Food Products industry. The net income has significantly decreased by 109.3% when compared to the same quarter one year ago, falling from $4.56 million to -$0.43 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Food Products industry and the overall market, SKYPEOPLE FRUIT JUICE INC's return on equity is significantly below that of the industry average and is below that of 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 49.00%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 111.76% 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.
  • SPU, with its very weak revenue results, has greatly underperformed against the industry average of 16.4%. Since the same quarter one year prior, revenues plummeted by 69.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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.