NYB

[David Randolph]

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

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.

[Ramsburg]

Bought NYB @ $16.70 for the 3Stocks Portfolio

[David Randolph]

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%.

[David Randolph]

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.

[David Randolph]

Just keep the plan:

Here'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.

[David Randolph]

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:

1) 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.

[David Randolph]

Reading this:

New York Community Bancorp, Inc. Files Shelf Registration Statement Registering $1.0 Billion of Securities

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