Peils pick of the week 9/7/11

peilthetraveler

peilthetraveler

NCT is a buy.

Current price as of right now. $5.11

Insiders have not been selling year over year. (In fact almost all have been aquiring more shares) Currently an extremely low P/E ratio. Last year they had $8.49 EPS and currently they are paying a .40 yearly dividend which makes the yield 8.1%.

Catalyst for a big move up is that probably in the next two weeks they are going to announce the dividend. With all the money they are making, it is very possible that they could raise the dividend 50% or more. They might even pay out a large 1 time divy. But even if they dont, and they just keep going business as usual, I still think this stock will go to $7 or $8 very shortly.
 
It's been in a [daily charts] nice uptrending channel since Aug 23. If it gets up above $6.25 there is little doubt that it will run on up...
 
aww bullshit peil - I opened this thread thinking you had found the best NFL line to bet

next time name your thread something better
 
Quote from peilthetraveler:

NCT is a buy.

Current price as of right now. $5.11

Insiders have not been selling year over year. (In fact almost all have been aquiring more shares) Currently an extremely low P/E ratio. Last year they had $8.49 EPS and currently they are paying a .40 yearly dividend which makes the yield 8.1%.

Catalyst for a big move up is that probably in the next two weeks they are going to announce the dividend. With all the money they are making, it is very possible that they could raise the dividend 50% or more. They might even pay out a large 1 time divy. But even if they dont, and they just keep going business as usual, I still think this stock will go to $7 or $8 very shortly.
More...
http://www.elitetrader.com/vb/showthread.php?s=&postid=3294546#post3294546
 
Quote from peilthetraveler:



Catalyst for a big move up is that probably in the next two weeks they are going to announce the dividend. With all the money they are making, it is very possible that they could raise the dividend 50% or more.
More...

http://finance.yahoo.com/news/Newcastle-Increases-its-Third-bw-3314239511.html?x=0&.v=1

They just announced about 2 hours ago that they will increase the divy 50%. The yield on this stock is now almost 13% with that increase. Stock price should shoot up tommorrow morning on open. Cant have high yielding stocks in this economy! Doesnt look right. :)
 
Stock was up almost 19% and I decided to get out. It may go higher, I dont know, but I'm out at an avg price of 5.88.

Of course as I write this I see the price hit 5.91 and higher, but oh well. The gain in this stock was acceptable for the less than 2 weeks or so I was in it.
 
Nice call on the dividend.

Quote from peilthetraveler:

Stock was up almost 19% and I decided to get out. It may go higher, I dont know, but I'm out at an avg price of 5.88.

Of course as I write this I see the price hit 5.91 and higher, but oh well. The gain in this stock was acceptable for the less than 2 weeks or so I was in it.
More...
 
Quote from peilthetraveler:

Thanks. :)
More...

Im curious what led you to this stock, how did you find it?

If you think telling us will in any way divulge to much information in terms of your trading strategy dont worry about it.
 
That stock I found on a screener. I noticed a P/E that was below 1 which I though unusual so I said, "why not try to find out why its that low?". I did a brief glance at financials and thought they looked somewhat stable making money for the last 2 quarters and for 2010. Then I checked managment to see if they were dumping or not and found they were adding. Then I saw they had just reinstated the divy, but from what they were making, they could pay so much more, and I knew the divy would be announced this month (as it was announced on the 17th of june so the 3 months was almost here) and I after some quick research, thought they would likely increase it.

Unfortunately because I knew the divy was the catalyst for the run up and the stock would likely not drop if the divy stayed the same , I didnt get a chance to pick a good point to get in, I just jumped in that first day and I know I would've gotten a better price had I waited a day or two, but I couldnt get left hanging if they announced the divy early as I knew a 50% increased divy in a stock that was already paying 8% would be a monster run up.

There are so many different ways I pick my stocks that it would take me all day to get it all down, but thats how I picked NCT. It was a little luck.

But if I had to try to give out my "secret formula" I would say that when you research a stock, read the SEC filings on edgars, listen to conference calls and see if management focuses on one thing one quarter and another thing another quarter (trying to pull a shell game on you) If you can catch management in a lie or being deceptive, that makes a good short sell. Get to know the company and the industry they are in and their competitors, ect. I know...alot of boring work, but it helps if you know what others are too lazy to find out. It will always help you get in before others and out before they sell.
 
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