Yielding a retirement-saving 14% with a rock solid business model
and crystal clear cash flows, you may not find a better dividend paying
stock in this market. And, as an added bonus this company’s profits
will actually increase when the Fed hikes rates. This is a no-brainer
investment in a market that’s starved for yield.
Although I don’t like to see falling share prices, last week’s stock
market reaction to the strong Jobs Report numbers that increased the
probability of a Fed interest rate hike in December, can only make me
laugh. Companies with interest rate exposure have been expecting a rate
increase for several years, and if management teams are smart they
already implemented business plans that will let them thrive in a higher
rate environment. (more)
Thursday, November 12, 2015
Chemours Co (NYSE: CC)
The Chemours Company, a chemical company, provides titanium
technologies, fluoroproducts, and chemical solutions. Its flagship
products include brands, such as Teflon, Ti-Pure, Krytox Viton, Opteon,
and Nafion. The company produces titanium dioxide, with Ti-Pure for
coatings, plastics, laminates, and paper; and fluoroproducts, including
Teflon fluoropolymers, Krytox performance lubricants, Viton
fluoroelastomers, and Opteon refrigerants. In addition, it offers
chemical products, including sulfuric acid, cyanide for gold processing,
chlorine dioxide for water treatment, and Virkon disinfectant
technologies for biosecurity. The company’s products are used in
plastics and coatings, refrigeration and air conditioning, mining and
oil refining operations, and general industrial manufacturing
applications.
Take a look at the 1-year chart of Chemours (NYSE: CC) below with added notations:
CC had been declining since its IPO, but now the stock has started trading sideways during the most recent month. While in that sideways move, the stock has formed a common pattern known as a rectangle. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern.
CC’s rectangle pattern has formed a resistance an $8.50 (red), and a $6 support (green). At some point the stock will have to break one of the two levels.
The Tale of the Tape: CC is trading within a rectangle pattern. The possible long positions on the stock would be either on a pullback to $6 or on a breakout above $8.50. The ideal short opportunity would be on a break below $8.50.
Take a look at the 1-year chart of Chemours (NYSE: CC) below with added notations:
CC had been declining since its IPO, but now the stock has started trading sideways during the most recent month. While in that sideways move, the stock has formed a common pattern known as a rectangle. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern.
CC’s rectangle pattern has formed a resistance an $8.50 (red), and a $6 support (green). At some point the stock will have to break one of the two levels.
The Tale of the Tape: CC is trading within a rectangle pattern. The possible long positions on the stock would be either on a pullback to $6 or on a breakout above $8.50. The ideal short opportunity would be on a break below $8.50.
Realty Income Corp (O): Buy on the Dip
REITs have fallen out of investor’s favor quickly as fears that higher rates will suddenly render these investments useless. Realty Income Corp (O)
focuses its investments on commercial real estate properties — a market
that is likely to maintain growth as interest rates edge higher.
O shares enjoy the strong underpinnings of long-term technical support while having seen short-term selling pressure that has knocked it down to a technical support level at $46. Only 13% of the analysts covering the stock have it ranked a buy, signaling potential for upgrades to drive prices higher.
We expect the overreaction to the FOMC’s interest rate activity to result in higher prices for O and other REITs. With a target of $52, Realty Income has about 13% upside potential over the next three months.
O shares enjoy the strong underpinnings of long-term technical support while having seen short-term selling pressure that has knocked it down to a technical support level at $46. Only 13% of the analysts covering the stock have it ranked a buy, signaling potential for upgrades to drive prices higher.
We expect the overreaction to the FOMC’s interest rate activity to result in higher prices for O and other REITs. With a target of $52, Realty Income has about 13% upside potential over the next three months.
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