Tuesday, March 24, 2009

ENS - An Infrastructure Play

Along with other choices such as GVA and KBR, Enersys seems to be poised to continue its upward trend.

Enersys (ENS) manufactures, markets, and distributes industrial batteries and related products. It also offers related direct current power products, including chargers, electronic power equipment, and various battery accessories. Its motive power batteries are used for industrial forklift trucks, mining equipment, railroad equipment and by material handling equipment dealers and original equipment manufacturers (OEMs), as well as by end users, such as manufacturers, distributors, warehouse operators, retailers, airports, mine operators, and railroads.

Positive signs are:

  • Reaching a new four month high.
  • Strong break above the 50 day moving average.
  • Increasing average daily volume.
  • Heavy fund ownership.
  • Low P/E (approx 6.23).

ENS is trading this morning at about 12.46 and could reach the twelve month estimated target of 15.


Sunday, March 01, 2009

Dividends Slashed

Prepare yourselves for a barrage of dividend cuts.
In order to cut costs in these difficult times, many companies will take advantage and announce a dividend cut or totally suspend the seemingly attractive quarterly returns.
As the stocks price declined, the dividends that remained unchanged have become disproportionately high yields compared to those of savings accounts, cd's or bonds.
When these changes occur, a new wave of selling will take place, led by investor disappointment.
After the bulk of dividend reduction has taken place, we can begin to search for bargains and better than average yields.