Market – S&P 500: MA(50) is still below MA(200), but it seems to be closing in on MA(200). It may cross in a few days. Not a confirmed uptrend yet. Better not to buy any stocks at this time.
BFR – Banco Frances S.A., Financial, Money Center Banks, Small Cap Blend, Based in Argentina, $9.65 (24 Sep 2010)
My stock screener has turned up names that I have not heard of before, and this time it is an Argentinian bank (Previously, the screener brought me HANS and BRKR). Although one of the filter conditions in the screener was a market capitalization of size mid cap and large cap, the screener included BFR which can be categorized as small cap blend. Its market capitalization value is US$ 1.7bio with a price under $10.
Like the previous two stocks of the week, BFR has also been covered by fool.com. Apparently, it got picked up by their screener that selects highest yielding stocks in the banking industry. BFR came second (after STD), with a dividend yield of 8.65%. This is good as investors can earn return from dividends as paid out by companies they buy. However, it is not normal for companies with high growth rate to pay out dividends. Growth rate companies tend to use the money earned for further expanding its business rather than paying out dividends. We should look at other factors before we can decide if BFR is good for long term investment or not.
Anyway, the market situation still does not confirm an uptrend, hence at this stage, we should still wait.
Disclaimer: Techniques or analysis covered on this website are to be used at your own risk. I cannot guarantee the outcome of applying any of the techniques or analysis, will always be in your favor. You must always do your own analysis and make your own decision before you purchase a stock.
“Stock of the Week” is not a recommendation of stock. It is a coverage of an interesting stock. Unless otherwise stated, no actual purchases or sales of stocks are undertaken. Actions taken are only simulated trading.
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