FDG: tantalizing

Discussion in 'Stocks' started by slickman, Apr 13, 2006.

  1. slickman


    This stock has taken its quarterly bloodletting and is back on the move up. It's hard to buy after a 2 dollar move up from recent lows but it seems to be chopping up in a quarterly cycle. It should break above 43 by early june before another sharp sell off on any news regarding earnings.

    The yield is nice but don't fall in love with it because all the money is in the trade. You can actually buy it cheap right before ex-div every quarter it seems.

    The momentum, volume and institutional ownership as well as market cap should keep it bouncing along unlike many other high yield hot stocks that have bounced and kept interest for a couple of years, ie NAT & VLCCF who both put up great dividends but are neglected by the fickel finger of analysts who like to value those kinds of companies based solely on their depreciating book value rather than cash flow.

    FDG has about 10 to 15 % upside in the relative immediate term. After that I'd get antsy about narfling* up my returns. It's a bit expensive so owning a lot of shares can be nerve racking but rewarding and probably good for 2 or three trades between now the end of this quarter.

    *narfle: genus, Conehads The Movie: Beldar had to "narfle the Garthak" (or kill a giant beast) on his home planet to spare his own life.