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June 14, 2006
Value Picks Via Markman
Jon Markman of MSN Money talks with two value pros, Matt Feshbach and Tom Kahn, for some value picks with little or no debt. The idea is pretty straight forward. Good companies with little or no debt don’t need to worry about rising interest rates. Kahn likes Audiovoxx (VOXX), Hologic (HOLX), NY Community Bancorp (NYB) and IDT (IDT). Here is a chart look at two.
Audiovoxx has good risk-reward ratio at current levels and is consolidating at support. VOXX has been trending lower since early 2004 and formed a large falling price channel. The stock moved to support from the lower trendline and there is also support around 11 from the 2003 lows. The stock consolidated the last few months and a break above 13.2 would signal the start of a move off support.
NY Community Bancorp is another interesting play and it pays a 6% dividend. I personally wonder if this stock is not a value trap. On the price chart, NYB has been wallowing between 15 and 19 for over a year. There is lots of support just above 15, but no catalyst and no breakout. Where are the buyers? There was a surge in March and then the stock fell back to the 16-17 area (gray oval). I would like to see the stock hold above the prior lows and move above 18 before jumping in.
Click here for the full article from Markman.
Posted by Arthur B. Hill at June 14, 2006 07:42 AM