NYB has a quarterly dividend of $0.25 which is $1 per year. At a current market price of $16.77, this gives me a dividend yield of 5.96%.
This news was out today:
«Shares of several New York-area banks rose as Philadelphia's Sovereign Bancorp Inc. agreed to sell Spain's Banco Santander Central Hispano a 19.8 percent stake for $2.4 billion, a 16 percent premium to its stock price. Sovereign will use the proceeds to buy Brooklyn, New York's Independence Community Bank Corp. for $3.6 billion, a 29 percent premium.»
And this is fueling speculation among other New York area banks:
Investors eyeing more New York-area bank mergers (http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh57615_2005-10-24_21-48-16_n24572897_newsml)
So, what we got here? We got a safe bet (with a 6% dividend yield the stock probably won't go down much from current levels) and fuel for speculation (merger and takeover rumors).
Technically today's volume on NYB was the highest in a year. The chart shows a falling wedge that may be near its end.
Considering this I will but NYB for the 3 Stocks on Fire Portfolio at tomorrow's open, 6.66% of capital as usual.
Bought NYB @ $16.70 for the 3Stocks Portfolio
Not an inspiring day yesterday on NYB. I'll design a simple trading plan to follow:
1) Sell with a profit at the upper limit of the descending channel/rising wedge, which for today stands at $17.95.
2) Sell with a loss if the stock is set to close below the last local low which was $16.20.
So, potential return on this plan is 7.48%. Potential loss is 2.99%.
Quote from: David Randolph on October 26, 2005, 07:25:48 AM
Not an inspiring day yesterday on NYB. I'll design a simple trading plan to follow:
1) Sell with a profit at the upper limit of the descending channel/rising wedge, which for today stands at $17.95.
2) Sell with a loss if the stock is set to close below the last local low which was $16.10.
So, potential return on this plan is 7.48%. Potential loss is 3.5%.
Keep the plan. The support level is $16.10, not $16.20 as I said before.
Just keep the plan:
QuoteHere's a simple trading plan to follow:
1) Sell with a profit at the upper limit of the descending channel/rising wedge, which for today stands at $17.95.
2) Sell with a loss if the stock is set to close below the last local low which was $16.10.
NYB went down to test support and then made a comeback to close near the highs. An attractive candlestick pattern was put in place. I should keep the initial trading plan:
Quote1) Sell with a profit at the upper limit of the descending channel/rising wedge, which for today stands at $17.90.
2) Sell with a loss if the stock is set to close below the last local low which was $16.10.
Reading this:
New York Community Bancorp, Inc. Files Shelf Registration Statement Registering $1.0 Billion of Securities (http://www.marketwatch.com/tools/quotes/newsarticle.asp?siteid=mktw&sid=381552&guid=%7BF8D8C23D%2D670B%2D4E94%2D9514%2D741964C6A898%7D&symb=)
I see dilution. I don't like dilution and I don't like large losses. I'll take a small one on NYB at today's open and move on.
I should remember RULE 11: Don't buy a stock only to obtain a dividend