Skip to main content

Seven Profitable, Dividend-paying Bollinger Band Breakouts

We've been presenting our Bollinger Band Breakouts at Alert HQ for quite a while now. What's nice is being able to use the stock screeners at our sister site TradingStockAlerts.com to refine the selection.

Accordingly, I started with bullish Bollinger Band Breakouts (those whose price exceeded the upper Bollinger Band) and selected those stocks that were profitable and offered a dividend. The following seven stocks popped out.

Symbol Name Last Price Sector Industry
AVD American Vanguard Corporation $13.38 Basic Industries Agricultural Chemicals
FUL H. B. Fuller Company $23.64 Basic Industries Home Furnishings
MLHR Herman Miller, Inc. $26.75 Consumer Durables Office Equipment/Supplies/Services
NYMT New York Mortgage Trust, Inc. $7.82 Consumer Services Real Estate Investment Trusts
RBN Robbins & Myers, Inc. $49.03 Capital Goods Fluid Controls
WAC Walter Investment Management Corp. $19.95 Consumer Services Real Estate Investment Trusts
WSCI WSI Industries Inc. $5.70 Technology Industrial Machinery/Components

These stocks range from micro-caps to small caps. All have charts that show bullish moves upward within the last couple of days.

For those of you who are interested in the dividend aspect, there are two real standouts on this list. First, we have New York Mortgage Trust, Inc. (NYMT) with a generous yield of 12.8%. The second is Walter Investment Management Corp. (WAC) which offers a yield of 11.1%. Note that both of these are Real Estate Investment Trusts.

Neither is without risk. For example, this is the description of Walter Investment Management: "Walter Investment Management Corp. is an asset manager, mortgage servicer and mortgage portfolio owner specializing in non-conforming, less-than-prime, and other credit-challenged mortgage assets." What is giving WAC a boost is that the company was able to successfully float a new securitization of residential mortgages, building and installment sale contracts, promissory notes, related mortgages and other security agreements. The proceeds will be used to compete an acquisition.

As for New York Mortgage Trust, Inc., there have been a number of bloggers and analysts highlighting the stock and its substantial dividend.

One more stock I'd like to highlight is Robbins & Myers, Inc. (RBN). This stock has an extreme chart. The big jump appears to be due to an enthusiastic analyst upgrade. R.W. Baird raised its price target on Robbins & Myers following solid Q3 results citing better than expected demand, strong execution, and raised guidance. The company is an illustration of the resurgence in U.S. manufacturing. They provide fluid management systems for energy, waste water processing and related industries and packaging solutions for pharmaceutical, food and cosmetic industries. Not as sexy as an iPad but profitability can come from some unlikely sources.

One thing I'd like to mention before closing. There is a saying among investors: "don't buy the breakout". Some of these stocks appear to be breaking out sharply. As such, you may want to be patient. Keep an eye on them and see what happens next. There may be a better entry price in the offing.

Disclosure: no positions in any stocks mentioned in this article

Comments

Popular posts from this blog

Running TradeRadar on Windows 7 and Windows 8

Development of the original TradeRadar Stock Inspector software was begun back in the days before Windows 7 and Windows 8 were available.

As these newer versions of Windows have become more popular, we have heard from some users that they are having problems installing and running TradeRadar on their newer PCs.

The good news is that TradeRadar will work just fine on Windows 7 and Windows 8. All you have to do is adjust the Windows Compatibility Settings to ensure TradeRadar runs as intended.

It is recommended that you can apply Compatibility Settings when running the initial installation; however, it is also possible to apply Compatibility Settings after the program has been installed.

Prior to installation
After downloading the install program, go to the folder where you have stored the TradeRadarStkInsp_7_Setup.exe or TradeRadarStkInsp_7_PRO_Setup.exe executable. Right-click on the executable file and select Properties. Click the Compatibility tab. Adjust the Compatibility mode to …

Alert HQ has moved!

End of an era!

This site was started way back in 2006/2007 to showcase my blog posts and the Alert HQ buy signals and sell signals. Alert HQ grew to include other kinds of stock alerts including Swing Signals, Trend Busters, Trend Leaders, Cash Flow Kings and more.

In the meantime, I built a sister site, TradingStockAlerts.com and I started using some of the same Alert HQ content over there. As a result, I am discontinuing the Alert HQ data here at Trade-Radar.com

The good news, however, is that all the Alert HQ signals and stock screens are still completely free. In addition, the pages have been enhanced so that you can hover over a stock symbol and a small chart will pop up so you can get a quick look at the stock's recent price action. If you click on a symbol it will take you to a page with plenty of financial and technical analysis information (still free!) as well as a larger chart that you can play with in terms of adding or deleting indicators, moving averages, etc.

Click …

Durable Goods report for Sept just so-so but Computer segment is on fire

The Durable Goods advanced report for September 2011 was released on Wednesday.

I like to dig into the Durable Goods report because it can be useful for seeing how tech in aggregate is performing and how the sector may perform in the future. I always focus on two particular measures: shipments and new orders. Let's see how it played out last month.

Shipments -- 

I generally give less importance to Shipments since this is a backward looking measure reflecting orders that have been confirmed, manufactured and shipped. It's similar to earnings reports -- it's good to know but the data is in the past and we're more interested in the future. The following chart shows how September shipments looked for the overall tech sector:


Results for the overall tech sector were a bit weak but take a look at the next chart which tracks the Computers and related products segment:


Results here were actually quite good and, to make things even better, the previous month was revised upward.

N…