Monday, June 13, 2011

First Financial Bankshares Inc. (NASDAQ: FFIN) Q3 2011 Price Target

Recent price: 32.41$
P/E Ratio: 18.30
3 Months Target Price: 36$

Company Description
According to Reuters, First Financial Bankshares, Inc. is a financial holding company. Through its wholly owned subsidiary, First Financial Bankshares of Delaware, Inc., it owns 11banks, a trust company, a technology operating company, and an insurance agency. As of February 24, 2011, these subsidiaries were First Financial Bank, National Association, Abilene, Texas; First Financial Bank, Hereford, Texas; First Financial Bank, National Association, Sweetwater, Texas;; First Financial Bank, National Association, Eastland, Texas; First Financial Bank, National Association, Cleburne, Texas, and First Financial Bank, National Association, Stephenville, Texas. Through its subsidiary banks, it conducts a full-service commercial banking business. Its service centers are located in North Central and West Texas. As of December 31, 2010, it had 52 financial centers


Confidence Margins
Strong resistance $37.14 (+15%)
Light resistance $35.50 (+10%)
Light support $32.00 (-1%)
Strong support $30.67 (-5%)

Recommendation
This financial holding company has been under pressure as the broad market took a dip. First Financial Bankshares still has some value left and will reward it's investors over the coming weeks.

Entry strategy
For the cautious investor:
Buy the stock for 33$ or less.

For the risk-taking trader:
As the company has no publicly traded option contracts, the use of leverage might be the way to get some excess return on this position.

Exit Strategy
For the cautious investor:
Sell when the stock reaches 36$, or keep it until 37$ if you are more bullish in your own analysis.

For the risk-taking trader:
Same strategy as for the cautious investor.

TD Ameritrade Holding Corp. (NASDAQ: AMTD) Q3 2011 Price Target

Recent price: 18.74$
P/E Ratio: 17.95
3 Months Target Price: 22$

Company Description
According to data provided by Reuters, TD Ameritrade Holding Corporation is a provider of securities brokerage services and technology-based financial services to retail investors, traders and independent registered investment advisors (RIAs). The Company provides services through the Internet, a national branch network and relationships with RIAs. The company is under significant influence by Toronto Dominion Bank.


Confidence Margins
Strong resistance $22.90 (+22%)
Light resistance $21.56 (+15%)
Light support $18.55 (-1%)
Strong support $16.73 (-11%)

Recommendation
As many stock brokers, TD Ameritrade is currently undervalued because of low volume on many stock exchanges. This is a play for those seeing an increase in the trading volume in the coming months.

Entry strategy
For the cautious investor:
Buy the stock for 19.50$ or less.

For the risk-taking trader:
The June 2011 19$ out-of-the-money call option contract seems to be the right position to take, they can be acquired for about 150$ per contract.

Exit Strategy
For the cautious investor:
Sell when the stock reaches 22$, or keep it until 23$ if you are more bullish in your own analysis.

For the risk-taking trader:
The contracts should be kept until the underlying reaches 22$. This should provide a very interesting return if the underlying reaches the target price as the contracts will get in the money.

Tech Data Corporation (NASDAQ: TECD) Q3 2011 Price Target

Recent price: 44.69$
P/E Ratio: 9.81
3 Months Target Price: 50$

Company Description
According to Reuters, Tech Data Corporation is a distributor of information technology (IT) products, logistics management and other value-added services. The Company serves approximately 125,000 value-added resellers (VARs), direct marketers, retailers and corporate resellers in more than 100 countries throughout North America, Latin America and Europe. During the fiscal year ended January 31, 2010 (fiscal year 2009), the Company acquired certain assets of Scribona, AB. In February 2011, the Company announced that it had created two new business divisions: HP Solutions Division And Networking Solutions Group.


Confidence Margins
Strong resistance $54.25 (+21%)
Light resistance $47.62 (+7%)
Light support $42.50 (-5%)
Strong support $41.13 (-8%)

Recommendation
This information technology distributor is currently missing the favor of the market, mostly since the company missed it's first quarter analysts' estimates for its earnings. This event should be seen as a slight mishap and investors will notice that they overreacted to the news. Tech Data Corporation is still profitable and will provide good returns to investors.

Entry strategy
For the cautious investor:
Buy the stock for 45$ or less.

For the risk-taking trader:
The September 2011 45$ out-of-the-money call option contract seems to be the right position to take, they can be acquired for about 270$ per contract.

Exit Strategy
For the cautious investor:
Sell when the stock reaches 50$, or keep it until 54$ if you are more bullish in your own analysis.

For the risk-taking trader:
The contracts should be kept until the underlying reaches 50$. This should provide a very interesting return if the underlying reaches the target price as the contracts will get in the money.

Regency Centers Corporation (NYSE: REG) Q3 2011 Price Target

Recent price: 41.62$
P/E Ratio: -
3 Months Target Price: 47$

Company Description
According to data provided by Reuters, Regency Centers Corporation is a real estate investment trust. The Company is the managing general partner in Regency Centers, L.P., the Operating Partnership. It focuses on owning, operating and investing in a portfolio of primarily grocery-anchored shopping centers that are tenanted by grocers, anchors, specialty retailers, and restaurants located in areas with above average household incomes and population densities. All of the Company’s operating, investing, and financing activities are performed through the Operating Partnership, its wholly-owned subsidiaries, and through its investments in real estate partnerships with third parties. The Company owns 99% of the Operating Partnership.


Confidence Margins
Strong resistance $47.51 (+14%)
Light resistance $46.65 (+12%)
Light support $41.18 (-1%)
Strong support $39.89 (-4%)

Recommendation
Market movements over the past couple of weeks have driven the company to year-to-date lows. At current price levels however, the dividend yield of the company will serve as a break on the slide in the stock price as it gets more and more attracting.

Entry strategy
For the cautious investor:
Buy the stock for 42$ or less.

For the risk-taking trader:
The October 2011 45$ out-of-the-money call option contract seems to be the right position to take, they can be acquired for about 155$ per contract.

Exit Strategy
For the cautious investor:
Sell when the stock reaches 47$.

For the risk-taking trader:
The contracts should be kept until the underlying reaches 47$.

Quality Systems Inc. (NASDAQ: QSII) Q3 2011 Price Target

Recent price: 78.84$
P/E Ratio: 37.28
3 Months Target Price: 65$

Company Description
According to data provided by Reuters, Quality Systems, Inc. develops and markets healthcare information systems that automate certain aspects of medical and dental practices, networks of practices, such as physician hospital organizations (PHOs) and management service organizations (MSOs), ambulatory care centers, community health centers, and medical and dental schools. The Company also provides revenue cycle management (RCM) services through the Practice Solutions Division. The Company operates in three segments: NextGen Division, the QSI Dental Division and the Practice Solutions Division. On August 12, 2009, the Company acquired NextGen Sphere, LLC (Sphere), a provider of financial information systems to the small hospital inpatient market. On February 10, 2010, the Company acquired Opus Healthcare Solutions, Inc. (Opus), a provider of clinical information systems to the small hospital inpatient market.


Confidence Margins
Strong resistance $100.00 (-27%)
Light resistance $91.57 (-16%)
Light support $72.18 (+8%)
Strong support $58.35 (+26%)

Recommendation
Quality Systems Inc. has been highly bid up by the markets over the past six months. Most valuation metrics indicate that the company is overvalued compared to it's peers in it's industry even they have pretty much the same growth rates. The recent fall in it's stock price will continue until the company comes to par with it's industry.

Entry strategy
For the cautious investor:
Sell short the stock for 78$ or more.

For the risk-taking trader:
The September 2011 75$ out-of-the-money put option contract seems to be the right position to take, they can be acquired for about 400$ per contract.

Exit Strategy
For the cautious investor:
Buy to cover when the stock reaches 65$, or keep it until 60$ if you are more bullish in your own analysis. 

For the risk-taking trader:
The contracts should be kept until the underlying reaches 65$. This should provide a very interesting return if the underlying reaches the target price as the contracts will get in the money.

Ventas Inc. (NYSE: VTR) Q3 2011 Price Target

Recent price: 52.20$
P/E Ratio: 37.73
3 Months Target Price: 57$

Company Description
According to data provided by Reuters, Ventas, Inc. is a real estate investment trust with a portfolio of seniors housing and healthcare properties in the United States and Canada. Its primary business consists of acquiring, financing and owning seniors housing and healthcare properties and leasing those properties to third parties or operating those properties through independent third-party managers. Through its Lillibridge Healthcare Services, Inc. subsidiary, it also provides management, leasing, marketing, facility development and advisory services to hospitals and health systems throughout the United States. As of December 31, 2010, its portfolio consisted of 602 assets, 240 seniors housing communities, 187 skilled nursing facilities, 40 hospitals and 135 medical office buildings (MOBs) and other properties in 43 United States’ states, the District of Columbia and two Canadian provinces. It has three segments: triple-net leased properties, senior living operations and MOB operations.


Confidence Margins
Strong resistance $57.45 (+10%)
Light resistance $56.48 (+8%)
Light support $48.53 (-7%)
Strong support $43.14 (-17%)

Recommendation
As a sector, REITs are currently undervalued by the market and the current dividend yield dampens the fall of the stock. As soon as the broad market recovers, investors should see an increased interest in these stocks. Ventas is profitable and this will allow the stock to sustain it's healthy dividend in the near term.

Entry strategy
For the cautious investor:
Buy the stock for 53$ or less.

For the risk-taking trader:
The November 2011 55$ out-of-the-money call option contract seems to be the right position to take, they can be acquired for about 145$ per contract.

Exit Strategy
For the cautious investor:
Sell when the stock reaches 57$.

For the risk-taking trader:
The contracts should be kept until the underlying reaches 57$.

Ingersoll-Rand PLC (NYSE: IR) Q3 2011 Price Target

Recent price: 44.09$
P/E Ratio: 17.58
3 Months Target Price: 50$

Company Description
According to Reuters, Ingersoll-Rand plc is a diversified company that provides products, services and solutions to enhance the comfort of air in homes and buildings, transport and protect food and perishables, and secure homes and commercial properties. IR-Ireland operates in four business segments: Climate Solutions, Residential Solutions, Industrial Technologies and Security Technologies. It generates revenue and cash primarily through the design, manufacture, sale and service of a diverse portfolio of industrial and commercial products that include American Standard, Club Car, Hussmann, Ingersoll-Rand, LCN, Schlage, Thermo King, Von Duprin and Trane. On December 30, 2010, IR-Ireland completed the divestiture of its gas microturbine generator business, which was sold under the Energy Systems brand. On October 4, 2010, it completed the divestiture of its European refrigerated display case business, which was sold under the KOXKA brand.


Confidence Margins
Strong resistance $52.33 (+19%)
Light resistance $50.05 (+14%)
Light support $43.87 (-0%)
Strong support $39.87 (-10%)

Recommendation
Shares of Ingersoll-Rand have been surrendered by shareholders in the month of May following a steep fall of the markets. This diversified industrial company is still very profitable and current prices offer an opportunity to cash in on the pessimism that seems to have been the norm over the last couple of days. Patient investors will be greatly rewarded.

Entry strategy
For the cautious investor:
Buy the stock for 45$ or less.

For the risk-taking trader:
The September 2011 45$ out-of-the-money call option contract seems to be the right position to take, they can be acquired for about 220$ per contract.

Exit Strategy
For the cautious investor:
Sell when the stock reaches 50$, or keep it until 52$ if you are more bullish in your own analysis.

For the risk-taking trader:
The contracts should be kept until the underlying reaches 50$. This should provide a very interesting return if the underlying reaches the target price as the contracts will get in the money.

Sonic Corporation (NASDAQ: SONC) Q3 2011 Price Target

Recent price: 9.71$
P/E Ratio: 22.01
3 Months Target Price: 12$

Company Description
According to data provided by Reuters, Sonic Corp. operates and franchises chain of drive-in restaurants (Sonic Drive-Ins) in the United States. Sonic Drive-Ins feature Sonic signature items, such as specialty drinks including cherry limeades and slushes, frozen desserts, made-to-order sandwiches and hamburgers, footlong quarter pound chili cheese coneys, hand-battered onion rings, tots, salads, and wraps. Sonic Drive-Ins also offer breakfast items that include sausage or bacon with egg and cheese Breakfast Toaster, or CroisSONIC breakfast sandwiches, and breakfast burritos. Sonic Drive-Ins serve the full menu all day. As of August 31, 2010, the Company had 3,572 Sonic Drive-Ins in operation from coast to coast, consisting of 455 Company-owned Drive-Ins and 3,117 Franchise Drive-Ins. Company-owned Drive-Ins are owned and operated by Sonic Restaurants, Inc. (SRI), a wholly owned subsidiary of the Company.

Confidence Margins
Strong resistance $13.11 (+35%)
Light resistance $11.86 (+22%)
Light support $8.50 (-12%)
Strong support $7.30 (-25%)

Recommendation
Sonic Corporation is a very profitable company. One should keep in mind however that the company is using a very high level of financial leverage. It has also raised more debt recently. If the company's management does everything well, this restaurant chain will provide fairly good returns by the end of the third quarter 2011.

Entry strategy
For the cautious investor:
Buy the stock for 10$ or less.

For the risk-taking trader:
The September 2011 10$ out-of-the-money call option contract seems to be the right position to take, they can be acquired for about 85$ per contract.

Exit Strategy
For the cautious investor:
Sell when the stock reaches 12$, or keep it until 13$ if you are more bullish in your own analysis.

For the risk-taking trader:
The contracts should be kept until the underlying reaches 12$. This should provide a very interesting return if the underlying reaches the target price as the contracts will get in the money.

Supervalu Inc. (NYSE: SVU) Q3 2011 Price Target

Recent price: 8.49$
P/E Ratio: -
3 Months Target Price: 12$

Company Description
According to Reuters, SUPERVALU INC. is a United States grocery channel. SUPERVALU conducts its retail operations under the Acme, Albertsons, Bristol Farms, Cub Foods, Farm Fresh, Hornbacher’s, Jewel-Osco, Lucky, Save-A-Lot, Shaw’s, Shop ’n Save, Shoppers Food & Pharmacy and Star Market banners as well as in-store pharmacies under the Osco and Sav-on banners. Additionally, the Company provides supply chain services, primarily wholesale distribution, across the United States retail grocery channel. The Company leverages its distribution operations by providing wholesale distribution and logistics and service solutions to its independent retail customers through its Supply chain services segment. It operates in two segments: Retail food and Supply chain services.


Confidence Margins
Strong resistance $12.45 (+47%)
Light resistance $11.77 (+39%)
Light support $8.46 (0%)
Strong support $7.06 (-17%)

Recommendation
As the economy gets back on it's tracks, Supervalu will take advantage of it's operational and financial leverage. In the coming quarters, earnings will tends to come higher than what analyst's are expecting. There will be quite a bounce in the stock price for investors willing to wait. This company is a buy at current prices.

Entry strategy
For the cautious investor:
Buy the stock for 9$ or less.

For the risk-taking trader:
The September 2011 9$ out-of-the-money call option contract seems to be the right position to take, they can be acquired for about 80$ per contract.

Exit Strategy
For the cautious investor:
Sell when the stock reaches 12$.

For the risk-taking trader:
The contracts should be kept until the underlying reaches 12$. This should provide a very interesting return if the underlying reaches the target price as the contracts will get in the money.

Cracker Barrel Old Country Store Inc (NASDAQ: CBRL) Q3 2011 Price Target

Recent price: 44.21$
P/E Ratio: 11.07
3 Months Target Price: 54$

Company Description
According to data provided by Reuters, Cracker Barrel Old Country Store, Inc. is principally engaged in the operation and development of the Cracker Barrel Old Country Store restaurant and retail concept (Cracker Barrel). As of September 21, 2010, it operated 595 full-service restaurants and gift shops in 41 states. The format of its stores consists of a trademarked rustic, old country-store design with a separate retail area offering a variety of decorative and functional items featuring rocking chairs, holiday and seasonal gifts and toys, apparel, cookware and foods, including candies and jellies. Store interiors are subdivided into a dining room consisting of approximately 27% of the total interior store space, and a retail shop consisting of approximately 23% of such space, with the balance primarily consisting of kitchen, storage and training areas. All stores have stone fireplaces. 


Confidence Margins
Strong resistance $57.79 (+31%)
Light resistance $53.86 (+22%)
Light support $42.79 (-3%)
Strong support $36.17 (-18%)

Recommendation
Cracker Barrel Old Country Store Inc release it's third quarter results and analysts did not like what they saw. Not only did earnings come short of expectations, but earnings and sales guidance also came short. This event provides investors with the possibility to enter in this company at a more fair price. Profits are still here and the company seems to have set the bar low for the next time it files it's earnings.

Entry strategy
For the cautious investor:
Buy the stock for 45$ or less.

For the risk-taking trader:
The september 2011 45$ out-of-the-money call option contract seems to be the right position to take, they can be acquired for about 240$ per contract.

Exit Strategy
For the cautious investor:
Sell when the stock reaches 54$, or keep it until 57$ if you are more bullish in your own analysis.

For the risk-taking trader:
The contracts should be kept until the underlying reaches 54$. This should provide a very interesting return if the underlying reaches the target price as the contracts will get in the money.

Plexus Corp (NASDAQ: PLXS) Q3 2011 Price Target

Recent price: 31.79$
P/E Ratio: 13.06
3 Months Target Price: 25$

Company Description
According to Reuters, Plexus Corp. , along with its subsidiaries, provide optimized product realization solutions through a product realization value stream service model. It provides these services to original equipment manufacturers and other technology companies in the wireline/networking, wireless infrastructure, medical, industrial/commercial and defense/security/aerospace market sectors. It provides advanced product design, manufacturing and testing services to its customers with a focus on the mid-to-lower-volume, higher-complexity segment of the electronic manufacturing services market. Plexus offers a range of integrated services, which include product development and design, prototyping and new product introduction services, test equipment development, material sourcing and procurement, agile manufacturing services, fulfillment and logistic services, after-market support and regulatory requirements.


Confidence Margins
Strong resistance $39.66 (-25%)
Light resistance $38.71 (-22%)
Light support $28.57 (+10%)
Strong support $21.08 (+34%)

Recommendation
Even if the company reported results that beat estimates, shareholders of Plexus Corp gave up on the stock because of continued selling pressure. They might have done well as the company's shares show continued downside potential that will be beneficial to investors taking advantage of it.

Entry strategy
For the cautious investor:
Sell short the stock for 31$ or more.

For the risk-taking trader:
The September 2011 30$ out-of-the-money put option contract seems to be the right position to take, they can be acquired for about 205$ per contract.

Exit Strategy
For the cautious investor:
Buy to cover when the stock reaches 25$, or keep it until 21$ if you are more bearish in your own analysis.

For the risk-taking trader:
The contracts should be kept until the underlying reaches 25$. This should provide a good return if the underlying reaches the target price as the contracts will get deep in the money.

Allied World Assurance Co Holdings AG (NYSE: AWH) Q3 2011 Price Target

Recent price: 58.07$
P/E Ratio: 5.26
3 Months Target Price: 63$

Company Description
According to data provided by Reuters, Allied World Assurance Company Holdings, AG, formerly Allied World Assurance Company Holdings, Ltd., is a specialty insurance and reinsurance company that underwrites a diversified portfolio of property and casualty lines of business through offices located in Bermuda, Hong Kong, Ireland, Singapore, Switzerland, the United Kingdom and the United States. The Company offers its clients and producers significant capacity in both the direct property and casualty insurance markets, as well as the reinsurance market. It operates through three segments: U.S. insurance, international insurance and reinsurance. The U.S. insurance segment includes its direct insurance operations in the United States. The international insurance segment includes its direct insurance operations outside of the United States. Its reinsurance segment includes the reinsurance of property, general casualty, professional liability, specialty lines and property catastrophe coverages..


Confidence Margins
Strong resistance $65.70 (+13%)
Light resistance $61.64 (+6%)
Light support $57.67 (-1%)
Strong support $54.53 (-6%)

Recommendation
Over the past couple of weeks, insurers like Allied World Assurance Co Holdings AG have been hammered by the market because of the Japan earthquake. This company is however very well managed and haw good fundamentals compared to it's peers. As the market and the insurance sector recovers, this stock will provide a good return to it's investors.

Entry strategy
For the cautious investor:
Buy the stock for 59$ or less.

For the risk-taking trader:
The September 2011 60$ out-of-the-money call option contract seems to be the right position to take, they can be acquired for about 230$ per contract.

Exit Strategy
For the cautious investor:
Sell when the stock reaches 63$, or keep it until 65$ if you are more bullish in your own analysis.

For the risk-taking trader:
The contracts should be kept until the underlying reaches 63$. This should provide a very interesting return if the underlying reaches the target price as the contracts will get in the money.

BofI Holding Inc. (NASDAQ: BOFI) Q3 2011 Price Target

Recent price: 13.93$
P/E Ratio: 7.70
3 Months Target Price: 17$

Company Description
According to data provided by Reuters, BofI Holding, Inc., incorporated on July 6, 1999, is the holding company for Bank of Internet USA, a nationwide savings bank operating through the Internet (the Bank). The Bank provides a range of consumer and wholesale banking services, focusing on gathering retail deposits over the Internet and originating and purchasing multifamily, single family and home equity mortgage loans and purchasing mortgage-backed securities. It services its customers through the Internet. It operates its Internet-based bank from a single location in San Diego, California, serving approximately 32,000 retail deposit and loan customers across 50 states in the United States.


Confidence Margins
Strong resistance $19.27 (+38%)
Light resistance $16.95 (+22%)
Light support $12.50 (-10%)
Strong support $10.80 (-22%)

Recommendation
BofI Holding Inc, operating mainly as an Internet Bank, has been able to be very cost efficient and profitable in the past. Investors could also consider holding this company for the long term. The company has very impressive fundamentals for a bank and has very little fixed costs.

Entry strategy
For the cautious investor:
Buy the stock for 14$ or less.

For the risk-taking trader:
As the company has no publicly traded options, the best way

Exit Strategy
For the cautious investor:
Sell when the stock reaches 17$, or keep it until 19$ if you are more bullish in your own analysis.

For the risk-taking trader:
The contracts should be kept until the underlying reaches 17$. This should provide a very interesting return if the underlying reaches the target price as the contracts will get in the money.

DryShips Inc (NASDAQ: DRYS) Q3 2011 Price Target

Recent price: 3.76$
P/E Ratio: 5.93
3 Months Target Price: 5$

Company Description
According to their SEC Filings, DryShips Inc. is a holding company. The Company is engaged in the ocean transportation services of drybulk cargoes worldwide through the ownership and operation of the drybulk carrier vessels and deepwater drilling rig services through the ownership of ultra-deep water drilling rigs. As of April 6, 2010, the Company owned, through its subsidiaries, a fleet of 39 drybulk carriers consisted of seven Capesize, 28 Panamax, two Supramax vessels and two Panamax newbuilding vessels, which have a combined deadweight tons of approximately 3.3 million dead weight tons. Its drybulk fleet principally carries a variety of drybulk commodities, including major bulk items, such as coal, iron ore, and grains, and minor bulk items, such as bauxite, phosphate, fertilizers and steel products. The average age of the vessels in its drybulk fleet is 8.3 years. In January 2009, the Company disposed off three Capesize newbuildings..


Confidence Margins
Strong resistance $6.44 (+71%)
Light resistance $5.12 (+36%)
Light support $3.56 (-5%)
Strong support $3.28 (-13%)

Recommendation
DryShips is a company that has it's stock subject to a lot of volatility. It however presents an impressive buying opportunity at current price. First, profitability is coming back to the company even if capital expenditures are rapidly increasing. There is also the upcoming spin-off of the Ocean Rig subsidiary that will greatly increase shareholder value while reducing the debt load of the holding company. Last time this company showed up on our screen list, it provided a 20% return to the cautious investor.

Entry strategy
For the cautious investor:
Buy the stock for 4$ or less.

For the risk-taking trader:
The September 2011 4$ out-of-the-money call option contract seems to be the right position to take, they can be acquired for about 33$ per contract.

Exit Strategy
For the cautious investor:
Sell when the stock reaches 5$, or keep it until 6$ if you are more bullish in your own analysis.

For the risk-taking trader:
The contracts should be kept until the underlying reaches 5$. This should provide a very interesting return if the underlying reaches the target price as the contracts will get in the money.

EastGroup Properties Inc (NYSE: EGP) Q3 2011 Price Target

Recent price: 42.20$
P/E Ratio: 62.20
3 Months Target Price: 38$

Company Description
According to Reuters, EastGroup Properties, Inc. is an equity real estate investment trust. EastGroup is engaged in the acquisition, development and operation of industrial properties in Sunbelt markets throughout the United States, including the states of Florida, Texas, Arizona and California. During the year ended December 31, 2010, EastGroup increased its ownership in real estate properties through its acquisition and development programs. The Company purchased three business distribution complexes with a total of six buildings (499,000 square feet) and 2.1 acres of land. During 2010, EastGroup transferred five properties (426,000 square feet) from development to real estate properties. During 2010, EastGroup acquired Commerce Park 2 & 3 in Charlotte, North Carolina; Ocean View Corporate Center in San Diego, Canada, and East University Distribution Center III in Phoenix, Arizona. During 2010, it also acquired 2.1 acres of land adjacent to its Country Club buildings in Tucson, Arizona. As of December 31, 2010, EastGroup owned 247 industrial properties and one office building. These properties are located primarily in the Sunbelt states of Florida, Texas, Arizona and California, and are clustered around the transportation features in supply constrained submarkets.


Confidence Margins
Strong resistance $49.00 (-16%)
Light resistance $46.91 (-11%)
Light support $38.52 (+9%)
Strong support $33.14 (+21%)

Recommendation
This REIT seems to be overvalued by many metrics compared to it's peers in the industry and the market will continue to run down those shares. The current dividend is also unsustainable in the long term compared to their profits.

Entry strategy
For the cautious investor:
Sell short the stock for 42$ or more.

For the risk-taking trader:
The September 2011 40$ out-of-the-money put option contract seems to be the right position to take, they can be acquired for about 165$ per contract.

Exit Strategy
For the cautious investor:
Buy to cover when the stock reaches 38$, or keep it until 34$ if you are more bearish in your own analysis.

For the risk-taking trader:
The contracts should be kept until the underlying reaches 38$. This should provide a very interesting return if the underlying reaches the target price as the contracts will get in the money.

Hilltop Holdings Inc (NYSE: HTH) Q3 2011 Price Target

Recent price: 9.23$
P/E Ratio: -
3 Months Target Price: 10$

Company Description
According to Reuters, Hilltop Holdings Inc, formerly Affordable Residential Communities Inc. is a holding company. The Company provides fire and homeowners insurance to low value dwellings and manufactured homes in Texas and other areas of the south, southeastern and southwestern United States through its wholly owned property and casualty insurance holding company, NLASCO, Inc. (NLASCO). NLASCO operates through its wholly owned subsidiaries, National Lloyds Insurance Company (NLIC), and American Summit Insurance Company (ASIC). NLASCO provides insurance products in the personal line and the commercial line markets. The personal lines include homeowners, dwelling fire, manufactured home, flood and vacant policies. The commercial lines include commercial, builders risk, builders risk renovation, sports liability and inland marine policies.


Confidence Margins
Strong resistance $10.52 (+14%)
Light resistance $10.12 (+10%)
Light support $9.01 (-2%)
Strong support $8.75 (-5%)

Recommendation
This company has seen it's share of drama over the last weeks. Not only is the company a part of the property and casualty insurance group, but the market links it's performance to other bank holding companies. This is a great entry point for investors willing to way for a reversal in the mood of the market.

Entry strategy
For the cautious investor:
Buy the stock for 10$ or less.

For the risk-taking trader:
The November 2011 10$ out-of-the-money call option contract seems to be the right position to take, they can be acquired for about 50$ per contract. These contracts are enormously undervalued by the market as their Black and Scholes Model price is lower than that of the 12.50$ contracts. This is clearly an anomaly.

Exit Strategy
For the cautious investor:
Sell when the stock reaches 10$, or keep it until 10.50$ if you are more bullish in your own analysis.

For the risk-taking trader:
The contracts should be kept until the underlying reaches 10$. This should provide a very interesting return if the underlying reaches the target price as the contracts will get in the money.