Grab the Dividend from ARCC

In late August '08 ARCC (then at 12.36) looked like a good prospect for profit. Since that time and until March '09, we experienced an uncontrollable downfall. The banking debacle and the dismal stock market behavior eroded the original investment, a good dividend and the chances for any possible gains.

We stuck to our guns, weathered the storm and now at 16.64, we have gained an annualized return of about 23.9% (including dividends).

Ares Capital Corporation (ARCC) is a private equity firm specializing in acquisition, recapitalization, restructurings, rescue financing, and leveraged buyout transactions of middle market companies.

Pluses for ARCC are:

•Acceptable chart pattern.
•Consistent uptrend and possible support at 16.50, the mid term rising bottom's line.
•A desirable average daily volume of over 1.4 million shares.
•A very nice dividend yield of 8.5%, ex-dividend date is only 13 days away.
•An 11.17 forward P/E ratio.

I find ARCC a good place to park some funds.

My thanks to Paul V. for bringing this security up to my attention in early April '10. Paul you were right on target.
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BCE is Still Sending Good Signals

I wrote about BCE about one year ago (see 11/17/09 blog). Since then, we have seen a gain of 31.6% (not including a 5.7% dividend), a very respectable return. On three ocasions BCE was highlighted in this blog's "stocks to Watch" list.

An updated view of BCE's attractive signs are:

•Fine chart pattern.
•Consistent uptrend and signifficant support at 32, the long term rising bottom's line.
•A good average daily volume of over 705,000 shares.
•A very nice dividend yield of 5.2%, ex-dividend date is only 14 days away.
•Forward P/E ratio is at 11.48.

At this point, I am inclined to increase a long position in BCE (trading this morning at 33.83).
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TMO is on a Steady Pace

On a day when many securities retreated, TMO went against the grain and kept above it's rising bottom's line.

Thermo Fisher Scientific Inc Co (TMO) provides analytical instruments, equipment, reagents and consumables, software, and services for research, manufacture, analysis, discovery, and diagnostics. In layman's terms, a company in the healthcare industry which provides medical instruments and supplies.

Barring any unforeseen major turn in the market, TMO (now trading at 51.53) is poised to reach the 55 level and beyond within the next six weeks.

Positive aspects of TMO:

1. Chart pattern shows a tendency for the stock price to stay above the rising bottom's line.
2. Consistent uptrend and rebound from the lows of August 31 '10.
3. Good average daily volume of about 2.9 million shares.
4. Earnings per share have increased during the past several years.
5. Forward P/E ratio is at about 12.88.
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HRS Rises as a Top Pick

HRS has risen to near the top of my list in a few weeks. With higher lows over the past four and one half months, crossing above both the 50 dma and the 200 dma and maintaining a rising bottoms line, this choice is worth a longer look.

Harris Corporation (HRS), together with its subsidiaries, operates as a communications and information technology company that serves government and commercial markets worldwide.

Some of the good points:

1. Early developing chart pattern. Recent break up above the 50 dma and 200 dma.
2. Consistent uptrend and rebound from the lows of July 1 '10.
3. Good average daily volume of about 950,000 shares.
4. Earnings per share have increased during the last eight years.
5. Forward P/E ratio is at about 10.
6. Dividend increased to 2.2%.


With Friday's closing price at 46.18, HRS could be poised for a smooth ride.
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WATG Makes the Cut

WATG has been in my short list from late April. Since then, in early May, the stock value took a 40% tumble (from about 12 to 7). Finally, in the past five months, it found a base at around 8. Meanwhile, it maintained a range above the 200 dma and on October 11, it rose above the 50 dma in a definite manner. In my view, these are positive technical signals.

Wonder Auto Technology, Inc.(WATG), in the Chinese auto parts sector, through its subsidiaries, engages in the design, development, manufacture, and marketing of electrical parts, suspension products, and engine components.

Heavy short positions may be forced to cover if the uptrend continues, thus catapulting the stock price.

Positives are:

•Good chart pattern. Recent break up above the 50 dma.
•Consistent uptrend and rebound from the lows of late August '10.
•Good average daily volume of about 520,000 shares.
•Forward P/E ratio is at about 11.


Closing yesterday at 10.40, WATG appears to be an attractive prospect.
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