Technicalspeculator.com’s Trade-of-the-Week: Dime Community Bancshares (DCOM)

By Tech_Spec
21-September-2019 4:12:07 PM
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This week’s trade comes from the financial sector of Nasdaq. some of the highlights are a recent breakout and a new all-time high, reasonable trailing multiple (P/E 16.26) and good ROE ( 7.96%). Enjoy.

 

Company profile: Dime Community Bancshares, Inc. operates as the holding company for Dime Community Bank that provides commercial banking and financial services in New York. It offers deposit products, such as savings, money market, and interest-bearing and non-interest bearing checking accounts, as well as certificates of deposit. The company also offers multifamily residential and commercial real estate loans; commercial and industrial loans, such as lines of credit, revolving lines of credit, and term loans; one-to-four family residential and condominium/cooperative apartment loans; home equity and home improvement loans; equity lines of credit on multifamily residential and commercial real estate loans; acquisition, land development, and construction loans; small business administration loans; finance loans and leases; and consumer loans.

 

Fundamentals:

Trailing P/E: 16.26, Forward P/E: 14.14

EPS: 1.34, PEG: 12.41, Beta: 1.12

P/S: 5.19, P/B: 1.28

Profit margin: 31.99%, Operating margin: 43.05%

ROA: 0.77%, ROE: 7.96%

Quarterly earnings growth: 5.80%

Additional fundamental data: https://finance.yahoo.com/quote/DCOM?p=DCOM

 

Technicals:

Recently broke out of a 16-month consolidation

New 52-week high, new all time high

Buying momentum is positive and rising, Buying volume is neutral

1st support level is at $20.00, safety stop is at $19.20

The target is $24.80

Suggested buying approach: Buy a full position now. If DCOM pulls back, as long as the price is above the safety stop, wait for confirmation of support before deciding to add to the position. Always use a 3% trailing stop.

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Author: Tech_Spec

Canada’s only Master of Financial Technical Analysis (MFTA). This 4 – 5 year program offered by the International Federation of Technical Analysts (IFTA) in England is regarded as the global standard. • Instructor of Technical Analysis for the Canadian Securities Institute (CSI). My role is teaching market analysis to industry professionals. • Financial Technical Analyst offering 25 years experience in the financial and investment service industry. • Editor and owner of the Technicalspeculator.com, an on-line independent financial market research and newsletter website. • Registered Securities Advisor

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