Aside from CHIB constantly giving me 10% stock and 12.00 cash I can see some predictable behavior of this stock.
Since last year, there are 3 price increase for CHIB.
272 - 336 (April 2009)
304 - 390 (September 2009)
350 - 430+ (May 2010)
Of these 3 major price increase, there's always 5% resistance before it goes all the way to 20-30% gain.
Further, a 5% support also occurs before it goes down again.
Thus my strategy here was I got on board after the 5% resistance, and since there's a stock and cash div TBD, I think this stock will not plunge back to 360+ levels.
I just need to figure out what my stop loss is, in case this price increase is the initial price spike before the cash/div declaration.
See March - April 2009, there's no dividend declaration yet, then the second peak, September 2009 was when the record-date was announced.
2 comments:
sir, what's your forecast on CHIB for the latter half of the year? do you think having a new administration is enough reason to buy into this stock?
Hi Brian,
I just sold CHIB at around 460, I checked the fib retracement and it looks like 472.50 was the max price, when that price was reached I started selling.
I'm still waiting for a good buy in level.
My guess is that the TBA stock/cash div will be due on later 3rd or early 4th quarter so I'll probably buy again before the divs are announced.
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