Monday, June 22, 2009

Weekly Stock Pick

Buy Sell Hold
The Market Week Ahead

This Monday morning as my trading software scans thousands of stock charts looking for low-risk high reward trades and investments, I’m looking at the important market moving events of the week ahead. The Fed is meeting this week and record $100 plus billion dollars of Treasury notes are being auctioned off. Key economic data reports this week are existing / new home sales, durable goods orders, May personal income, and consumer sentiment. Bernanke is sharing with Congress on Thursday his role in the Bank of America - Merrill Lynch merger. Tech stocks are on the radar as Apple’s Steve Jobs had a liver transplant.

My Stock Pick This Week

I have a buy rating on a bank that is has a market cap of over $5 billion and has $2.5 billion in cash with an asset ratio of about 19% which is three times the average in which they could possibly use to buy competitor problem banks at fire sale prices. They also have the highest customer satisfaction rating in New England according to JD Power & Associates. This bank has the good chance to take market share from the bigger problems banks, and it’s now the country’s 11th largest bank because of their risk averse policies of the past.

Buy Long Position People’s United Financial. Ticker PBCT

Buy Entry: 14.60 to 15.31

Stop-Loss: 14.50 or Lower

Take Profit Areas: 16.05 to 16.42, 18.89 to 19.50, 19.76 to 20.39, 21.93 to 22.63, 26.39 to 27.23

People’s United Financial Company Profile

People’s United Financial, Inc. operates as a savings and loan holding company of People’s United Bank, which provides commercial banking, retail and small business banking, and wealth management services to individual, corporate, and municipal customers. The company operates through three business segments: Commercial Banking, Retail Banking and Small Business, and Wealth Management. The Commercial Banking segment provides commercial lending, commercial real estate lending, indirect auto lending, and commercial deposit products and services, as well as equipment financing, cash management, correspondent banking, municipal banking, and corporate trust services. The Retail Banking and Small Business segment offers consumer and small business deposit products, consumer lending/residential mortgage and home equity, and small business lending services. The Wealth Management segment involves in private banking, trust services, brokerage, financial advisory services, investment management services, and life insurance, as well as other insurance services. In addition, the company provides online banking and investment trading, and telephone banking services. As of December 30, 2008, it operated a network of 300 branches, including 79 full-service supermarket branches, 43 investment and brokerage offices, 9 People’s Capital and Leasing Corp offices, 16 commercial banking offices, and over 400 ATMs in Connecticut, Massachusetts, New Hampshire, Vermont, Maine, and New York. People’s United Financial, Inc. was founded in 1842 and is headquartered in Bridgeport, Connecticut.

Click here to review and trial the Trading Software I used in determining my long position on People's Financial.

Click the Peoples Financial Stock Chart for a larger view.

People Financial Stock Chart