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Monday, February 28, 2011

High Yield Dividend Investment - MFA Financial

Dow Jones Industrial Average is still near two year high but last week's profit taking might shook investors confidence a bit.  So to have a good night sleep it may be better to look into stocks that is less volatile and provide high yield dividends such as MFA Financial (MFA)

MFA Financial has a low Beta value of 0.42 and provide quarterly dividend of 23 cents which is equivalent to an annual percentage yield of 11.12% at the price of $8.45 per share.  Although shares has gained 16.7% for the past 52 weeks, its P/E ratio is still low at 9.11.  The technical chart shows upward trend as both the 50 day and 200 day moving average are heading up.  Investing in stock like this could provide decent return from both dividend and gain in share price.

Friday, February 25, 2011

High Yield Dividend Investment - Anworth Mortgage Asset

In a volatile market like this week where Dow could fall more than 100 points per day for two straight days it is a good idea to go for something less volatile but still provide pretty good ROI.  Such example are stocks that pay dividend with high yield such as Anworth Mortage Asset (ANH).  

Traded at $7.08 per share ANH gives quarterly divided of 22 cents per share equivalent to annual yield of 12.4% - a pretty good return compared to bank and bond.  Even if the stock tanks, if you keep buying it just gave you more shares for the same price plus a higher yield.  The stock hasn't change much for the past 52 weeks and with such a low volatility with beta at 0.31 it is something where you can through your money in and sleep well for the entire year.

Wednesday, February 23, 2011

Defensive Investment in a Volatile Market - CIM, TWO

Two days of straight 100 points drop on Dow probably scared away many weak hands and even shook confidence of long term investors.  Although most stocks for these two days are in the red, there is a group of stock that could still make investors smile - the high-yield dividend companies.  Investors of these companies do not need to be upset about a down day but on the contrary should be smiling because the lower the price for these stocks are, the higher the yield is. 

So for instance let's say a stock worth $5 per share pays 40 cents divided which makes an 8% yield.  If the stock drop to $4 per share, the yield now becomes 10%.  The price drop is probably not a good news if you are not putting anymore money in.  However if you are long term and continue to buy the same stock, the new lower price and higher yield works for you as beside the higher yield, you get to buy more shares for the same price.  

Two high-yield dividend companies worth looking at are Chimera Investment (CIM) and Two Harbors Investment (TWO).  Both of these companies invest in residential mortgage-backed securities and have decent dividend yield of 16% and 15% respectively.  Shares of CIM have gained 15% for the past 52 weeks but is still trading at a very low P/E ratio of 6.4 while Two Harbor Investment gained 22% during the same period and is also trading at a low P/E ratio of 6.98.  The chart shows both of these stocks are on the up side and even if the price stay the same for the next 52 weeks, you are still getting a 15% return for the year, a pretty decent investment.

Tuesday, February 22, 2011

Offshore Drilling Stock - HERO

Offshore Drilling Stock got the death sentence last year following US government's temporarily ban on offshore drilling following BP's Deepwater Horizon disater.  Player such as Seahawk Drilling has just raised the white flag recently by fire-selling $400 million assets to Hercules Offshore (HERO) for a deep discount of $100 million including 20 drilling rigs.  This could be good news as Hercules Offshore now has one less competitor to worry about in the Gulf of Mexico.  However the biggest enemy for Hercules Offshore at the moment is probably not the competitor but US government's temporarily restriction on offshore drilling.  

Following the deal, many analysts saw this as a plus for Hercules Offshore and upgraded the target price of the stock to $6.  Shares of Hercules Offshore is traded at $4.28 at the close today, up 3.38% despite 2% plus drop on Nasdaq and S&P 500.  The technical chart shows bullish trend as both 50 and 100 day moving average are heading up while KD line is near 80.  The stock is still traded way below its 2008 high of $38 per share so maybe this is the time to grab more shares of HERO while they are still cheap.  A lift in ban on offshore drilling in the Gulf of Mexico could easily push this stock into double digit.  So lets wait and see.

Friday, February 18, 2011

Hot Stock Of The Day - DIET

Share of internet based diet program provider surged for second straight day with another 21% gain to 65 cents per share following a private placement.  The stock is traded at a very heavy volume of 2.23 million shares, about 10 times more than average volume.  The technical chart indicates bullish signal as the stock is traded above both 20 day and 50 day moving average with rising KD. 

Thursday, February 17, 2011

Investment in Obesity -

Obesity is a major problem throughout the nation yet companies have saw this as an opportunity to make money by providing diet program.  One of these diet program providers is (DIET), an internet based diet program provider. generates revenue by selling digital weight-loss programs, selling weight-loss meals, licensing its intellectual property and advertising from its contents.  Despite being in a growing business, the company hasn't been doing well for the past few year on declining revenue and growing net loss and as a result shares went from $8 per share in 2006 to the multi-year low of 28 cents per share recently on possibility of going out of business.  However today the company announced that it received a lifeline support with additional $1.5 million funding from outside investors.  Shares surged 22.79% so far to 49 cents per share with heavy volume of 1.32 shares traded.  The technical chart indicates bullish sign as the company is now above 20 day moving average with rising KD.  Another bright spot is the recent insider transaction as directors bought 2 million shares at 41 cents per share.  We should expect the stock to keep rising for the year.

Wednesday, February 16, 2011

Hot Sector Of The Day - Chinese Solar - LDK JASO SOL

The Chinese Solar stocks are doing well today with most stocks gaining 2% to 5%.  Leading the way are LDK Solar (LDK) with 5.1% gain, JA Solar (JASO) with 3.02% gain and ReneSola(SOL) with 2.98% gain.  On Friday Yingli Green Energy (YGE) is expected to announce its 4th quarter 2010 earning followed by JA Solar and Trina Solar (TSL) next week.

Tuesday, February 15, 2011

Cancer Drug Maker on the Move - Spectrum Pharmaceutical

Shares of cancer drug maker Spectrum Pharmaceutical (Nasdaq:SPPI) soared 5.88% to $6.84 per share on record revenue growth for the fourth quarter and fiscal year 2010.  Compared to of 2009, fourth quarter product revenue surged 500% while annual product revenue doubled from $28 million to $60 million.  The company already have two drugs on the market that bring in continuous cash flow and still have drug on clinical trials that could add to future growth.  Technical chart also shows bullish signal as both 50 day and 100 day moving average are going up with KD lines still rising.  Do expect the stock to keep rising for the year with more good news coming.

Monday, February 14, 2011

Solar Stock On The Move - JinkoSolar Holding

Shares of Chinese solar product manufacturer JinkoSolar Holding(JKS) surged 5.81% to $30.24 per share. The stock currently has a 8.2% short interest which could move the stock up more rapidly as the shorts are trying to cover amid the rising momentum. Technical chart shows very bullish signal as the KD is about to move up.  The stock is also trading along 20 day moving average showing near term rising trend.

Sector On The Move - Chinese Solar

The Chinese Solar companies are on the rise today with most stocks in this sector rose anywhere from 2.47% to 5%.   Leading the way are JA Solar (+4.62%), LDK Solar (+4.33%), and ReneSola (+3.95%).  This Friday Yingli Green Energy (+2.55%) is expected to annouce its 4th quarter earning for 2010.

Thursday, February 10, 2011

Rare Earth Metal Investment - Qiao Xing Universal Resources

The speculation of the rare earth metals stocks have drove up share prices of companies such as Molycorp and Rare Element Resources for the year.  After the recent correction that saw some of these rare earth metals stocks dropped as many as 40%, this is probably a good time to come back to these high flying stocks.

Qiao Xing Universal Resource(XING) used to be a telecommunication equipment company.  In 2007 the company switched its focus to natural resource and is renamed to Qiao Xing Universal Resource. The company now focuses on mining and processing rare metal ores and several strategically important base-metal ores, including molybdenum, copper, lead and zinc.  The technical chart indicates positive trend as the stock is above both 50 day and 200 day moving average.  Despite the pull back recently both MACD and KD indicates bullish trend as MACD is above 0 and K line is still above D line.  The stock could drop below $2.5 to 50 day moving average before making a upward move again.

Monday, February 7, 2011

Rare Earth Metal Investment - Freeport-McMoRan Copper and Gold

The speculation of the rare earth metals stocks have drove up share prices of companies such as Molycorp and Rare Element Resources for the year.  After the recent correction that saw some of these rare earth metals stocks dropped as many as 40%, this is probably a good time to come back to these high flying stocks.

Freeport-McMoRan Copper and Gold (NYSE:FCX) is known by most people a copper mining company.  The $54 billion company has mining properties throughout Asia, Africa, South America and North America.  The company's 2.59 billion pounds of molybdenum reserve also makes it a part of the family of rare earth metals stocks.  Compared to the other high flying and high speculative rare earth metal stocks, FCX is a much saver defensive option.  However the company probably won't go up as crazy as the other rare earth ones.  

The financial shows improvement in both revenue and income from 2009 to 2010. Current technical chart also indicates upside as the stock is now above 50 day moving average while KD line has just reverse its downward trend.  We should expect shares of FCX to be back in the $60 range soon.

Friday, February 4, 2011

Seawater Reverse Osmosis Investment - Energy Recovery Inc

Fresh water is such an important natural resource and seems to be always available once you open the tab.  However in parts of the world with extreme dry heat like United Arab Emirates or populous city like Shanghai where water may be polluted, drawing fresh water from the salty sea become necessary.  Therefore desalination plants using seawater reverse osmosis technology were built to provide enough fresh water for the public.  And with the global weather getting more extreme, it may be time to look at into companies related to the eawater reverse osmosis technology.

Energy Recovery Inc (ERII) develops energy recovery device that improve the efficiency of seawater reverse osmosis.  The traditional way of water desalination is too expensive yet with Energy Recovery's technology the same desalination could save between 35% to 45% of energy.  By making seawater reverse osmosis more affordable, Energy Recovery Inc should be able to attract more customers as demand for fresh water keep rising.  Shares of ERII is currently trading near all time low of $3.65 per share but the technical chart shows the stock is ready for short term rally with K line crossed on top over D line.  

Wednesday, February 2, 2011

Rare Earth Metal Investment - Thompson Creek Metals

The speculation of the rare earth metals stocks have drove up share prices of companies such as Molycorp and Rare Element Resources for the year.  After the recent correction that saw some of these rare earth metals stocks dropped as many as 40%, this is probably a good time to come back to these high flying stocks.

Another possible rare earth metal player is Thompson Creek Metals (NYSE:TC), which mines molybdenum in Idaho.  Compared to other rare earth metal stocks that saw 400% or 500% gain for the past 52 weeks, shares of Thompson Creek Metal only gained 13% during the same period.  The mining company brought in more than $100 million every quarter and for the first three quarters of 2010 already earned $436 million, $70 million more than the entire year of 2009.  On the other hand, Molycorp and China Shen Zhou Mining each earns less than $10 million per year.  So in such a high speculative sector like rare earth metal, Thompson Creek Metal would be a safer bet.  Its technical chart also shows bullish trend as the stock is above 50 day moving average with KD about to reverse the downtrend.  

Tuesday, February 1, 2011

Investing Chinese Solar - China Sunergy

The entire Chinese solar stock sector continue to rise for the second straight day amid triple digit oil price caused by political instability in Egypt.  Solar stocks such as LDK Solar, Solarfun, JA Solar, Yingli Green EnergySuntech Power and  ReneSola rose from 2% to 3% with Suntech, ReneSola and JA Solar leading the way.  However despite the overall interest in the Chinese solar sector, China Sunergy (Nasdaq:CSUN) lags behind with a mere 0.45% gain.  

Shares of China Sunergy is trading at $4.43 with low P/E ratio of 5.97.  A stock with such a low P/E ratio on a hot sector should have already drawn lots of interest but at the moment it does not seem to be the case.  Shares for the past year and half haven't change much and fluctuate between $3.5 to $5 per share.  Technical chart points to short term weakness with KD dropping and stock traded just below 50 day moving average.  

The financial chart looks more promising with consecutive quarterly revenue and net income increase.  The year 2010 should be a bright spot for the company as for the first three quarters the company has already earned $346 million, the figure the company achieved in 2008, the best year so far.  Even more promising is that the company has swung to net income of $36 million during 2010 so far as the company has yet to turn in profit since 2006.  So looking at the financial this could very well be a hidden jewel waiting to be discovered.  Do expect more investor attentions once the company reported the result for the entire year of 2010.