Sunday, September 29, 2013

Short Term Gainers

The chart below from Yahoo Finance shows two interesting short term gainers, WHX and BIB.  Double click on the chart to expand it.  WHX is an oil trust stock which is shown in blue on the chart while BIB, a leveraged biotech index ETF, is illustrated by a red comparison price line.  The chart basically covers the summer months including the August quarterly dividend payout time for WHX.

As you can see on the chart, BIB gained almost 40% during the summer months.  Biotech stocks have been in a long term uptrend since 2011.  BIB has gained more than 200% since the fall of 2011.  I don't know how long this trend will last, but I believe that BIB will continue to rise this fall after the Congressional budget crisis is past.

As for WHX, the stock fell hard after the ex-dividend date in August.  However, since WHX pays an amazing 47% per year in dividends at the current price, the stock did not stay long in the $3.70 range.  It steadily climbed back to almost $5 per share again, and it only recently pulled back some.  Several big investors appear to be seeking that huge dividend, but eventually they will lose capital as the oil trust drops to zero dollars in the next two years.  The point I am making here is that money can be made after the ex-dividend stock crash each quarter.  If you are able to buy the stock around $3.72 each quarter and sell it at $4.80, you can make 29% for your money during that quarter.  Naturally, the buying and selling points will gradually drop, but if you can guess right near the bottom of each quarter on the price, you should be able to make around 100% per year for your money while the opportunity lasts.


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