Wednesday, July 19, 2006

Trade Ideas: PBCT

Bernake's remarks has brought an overreaction in the market, likely driven by short covering. Whether the positive test of support made on Wednesday has any meat to it will be made clear over the next few days.

The Trade-Ideas scan was again popping out stocks at a healthy rate. One of the more recent stocks on the scan list was PBCT.

The stock is fast approaching a test of $34 resistance. A break of $34 (or $34.23 depending on the data provider) should see the return of momentum buyers. Rally from early 2004 has slowed considerably over the last 12 months but the trend remains intact. The point-n-figure chart holds to a triple top breakout from May 26th but shows no upward price target. It pays a 3.1% yield. Earnings scheduled for July 21st (this Friday) - will this be the fundamental driver?

People's Bank provides a range of financial products and services to individual, corporate, and municipal customers primarily in the state of Connecticut. The bank also generates consumer, commercial, and municipal deposits. In addition, it provides specialized services, such as personal, institutional, and employee benefit trust; cash management; and municipal banking and finance. Further, the bank offers brokerage and financial advisory services, and life insurance; equipment financing; asset management; and insurance services.

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