Steady Return Stock - NITE
Steady Investment Bank The Finding a stock going up in a good market is probably not very difficult. Probably even monkeys can pick a winning stock. However in the stormy market like we are having since the last month, even the pros will have a hard time to pull off a decent return. And for the non pro like us, a safer bet would be to get a Steady Return Stock - a stock which won't give you too much trouble and sleepless night. The Steady Return Stock we spot today is Knight Capital Group Inc. (NITE), the Jersey City, New Jersey based asset management service company. Despite the resent sell-off in many stocks, the investment company holds its stock price pretty well, trading near $16 per share. The following shows why the stock has been able to hold the gain and why it will still been doing ok:
Technical
The 52 weeks chart shows this is a steady return stocks according to the followings:
The financial statement shows steady increase in revenue from 2004 to 2005, yet still a little big less than 2003. In addition net income has increased a bit from 2003 to 2005. The surge in net income of 2004 is not counted as it is due to additional 100 million from discontinued operations. One big plus from the cash flow statement shows the company actuallh has been buying back shares for the past few years.
1. Market Potential(investment): 4
2. Technical: 4.5
3. Financial: 4.5
Overall Rating: A
Technical
The 52 weeks chart shows this is a steady return stocks according to the followings:
- first of all since the beginning of February both 50 day and 200 day moving average have been rising steadily. This is the first sign of a steady return stock.
- secondly since January both 50 day and 200 day moving average have been staying at similar angle and have staying pretty close together. This means no roller coaster like ride for the stock and is another sign of a steady return stock.
- thirdly the stock for the past 52 weeks has stayed relatively close to the 50 day moving average. Although the stock shoot up quite a bit in mid April it came back down again in mid May gain to near 50 day moving average. This shows now is a safe time to buy the stock.
The financial statement shows steady increase in revenue from 2004 to 2005, yet still a little big less than 2003. In addition net income has increased a bit from 2003 to 2005. The surge in net income of 2004 is not counted as it is due to additional 100 million from discontinued operations. One big plus from the cash flow statement shows the company actuallh has been buying back shares for the past few years.
Steady Return Stock Rating(1 ~ 5, 5 means highest):
1. Market Potential(investment): 4
2. Technical: 4.5
3. Financial: 4.5
Overall Rating: A
posted by Stock Geek at 10:53 AM
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