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Friday, 05/21/2004

A Cornucopia of Candidates
By Nich Sheldon

I have spent the greater part of the past two days looking for solid technical signs of bullish candidates to add to our drip portfolio, but have yet to find anything that is convicting enough to jump on. However, I have found four candidates that are worthy of watching based upon their point and figure price objectives, dividend payouts, and the fact that their charts have not completely fallen apart over the past month or two. Do with these candidates what you will, but rest assured that I don't see very many other candidates out there that look as good these.

Company Description

Boston Properties is a fully integrated, self-administered and self-managed real estate investment trust that develops, redevelops, acquires, manages, operates and owns a diverse portfolio of Class-A office, industrial and hotel properties. The Company is one of the largest owners and developers of Class-A office properties in the United States, concentrated in four core markets -- Boston, Midtown Manhattan, Washington, D.C. and San Francisco.

[Source: Company Press Release]

Reasons to Invest:

Boston Properties Inc (NYSE:BXP) is the first candidate for the watch list. In the past four weeks BXP jumped to the middle of its industry in regards to price performance. This can be seen as a positive, especially since the stock was trading in the bottom ten percent of its industry over the past six months.

I also so a low risk rating on BXP for entries into their stock. They have a dividend percentage growth rate outlook of 3.73 percent over the next year, 7.01 percent over the next three years and 8.80 percent over the next five years. On top of that they expend their sales to grow by 10.53 percent over the next year, 13.76 percent over the next three years, and 20.58 percent over the next five years.

In February, Boston Properties, Inc signed two new leases in the Times Square Tower. The leases total 131,807 square feet, and are expected to be the new home of two additional prominent law forms.

BXP has a revised bullish price objective of 64.00 on their point and figure chart. While this estimate appears to be pretty high for a stock that has just recently bounced off of support of 43.00. I remain optimistic that we could see returns to 55.00 by year-end and possibly onto the 64 range by next year.

BXP currently yields a heft annual dividend of $2.60, or 5.78% per share owned. Their next dividend payout is tentatively scheduled for June 28th, 2004.

Broker Recommendations

Strong Buy         3
Buy                4
Hold               9
Sell               1
Strong Sell        0

Brokers Covering  17


DRIP Information:
Shares to Qualify = 1
Auto-reinvestment = Yes
Accept Foreign Accounts: Yes
Temper Enrollment: Yes

Min/Max Investment = $100-$25,000/quarter


Reinvestment Fees - 
Dividend investment fees: 0
Cash investment fees: 0
Auto reinvestment fees: 0


Transfer Agent:
BankBoston
888-485-2389


Corporate Headquarters:
111 Huntington Avenue
Boston, MA 02199
Phone: (617) 236-3300
Fax: (617) 536-3128

---

Company Description

Shell Oil Products US, a subsidiary of Shell Oil Company, is a leader in the refining, transportation and marketing of fuels, and has a network of nearly 7,500 branded gasoline stations in the Western United States. Shell Oil Company is a 50 percent owner of Motiva Enterprises LLC, along with Saudi Refining, Inc., which refines and markets branded products through 11,000 stations in the Eastern and Southern United States. Shell Oil Company is an affiliate of the Royal Dutch/Shell Group of Companies (NYSE: RD/SC). For more information, please visit www.shell.com .

[Source: Company Press Release]

Reasons to Invest:

The second candidate is The Shell Transport & Trading Company Plc (NYSE:SC). It may come as no surprise that Shell has ranked in the top of its industry over the past six months; especially since Oil prices have blown through roof nationwide.

Shell expects a dividend growth rate of 5.74 percent over the next year, 7.45 percent over the next three years and 2.87 percent over the next five years. With gas and oil prices rising at such a fast pace the company expects a fabulous sales percentage growth rate of 21.12 percent over the next year.

I have a no risk rating on entering new positions on the stock, and while the stock may take a year to move five points I see solid growth over the next three to five years for SC. Currently, the stock is trending right through the middle of its May 03 regression channel, and has yet to test the bottom of the channel during a single session.

Shell has a double top breakout pattern on their point and figure chart, and a bullish price objective of $66.00.

Less than a month ago, Shell announced a plan to buy back $2 billion of their own shares. This is one sign that the company has a positive outlook on their future, however, this can also be a good indication that Shell is trying to help keep shares at their current level.

Last year SC generated more than $80 billion in revenue, and they currently have a profit margin of 5.92 percent. Their dividend yield is set 3.87 percent or $1.6463 per share owned.

Broker Recommendations

Strong Buy         2
Buy                2
Hold               7
Sell               3
Strong Sell        1

Brokers Covering  15


DRIP Information:
Shares to Qualify = 1
Auto-reinvestment = No
Accept Foreign Accounts: Yes
Temper Enrollment: Yes

Min/Max Investment = $25-$Unlimited


Reinvestment Fees - 
Dividend investment fees: $2.50 +$0.07/share
Cash investment fees: $2.50 +$0.07/share
Auto reinvestment fees: N/A


Transfer Agent:
Bank of New York
888-269-2377


Corporate Headquarters:
Shell Centre
London, EN SE1 7
Phone: (212) 218-3113
Fax: (212) 218-3114

---

Company Description

Charter One Financial, Inc. is a financial holding company that owns all of the outstanding capital stock of Charter One Bank, N.A. (the Bank). The Company's principal line of business is consumer banking, which is primarily conducted through the Bank and its subsidiaries. Consumer banking services offered by the Bank include retail banking, mortgage banking and other related financial services. The Bank also provides a range of deposit products, consumer loans, business lending and commercial real estate loans.

[Source: Company Press Release]

Reasons to Invest:

Charter One Financial Inc (NYSE:CF) is the third candidate worth watching. This company has been hot lately, moving from the bottom ten percent of the price performers in its industry to the top ten percent.

The company not only yields a better than decent dividend of 2.64% or $1.16 per share owned, but they also see a dividend percentage growth rate of 18.07 percent over the next year, 17.77 percent over the next three years and 15.53 percent over the next five years.

In the news, Charter One Financial said that they planned to open 67 in-store bank centers in Wal-Mart stores across six different states. This plan was announced on March tenth, and the company hopes that this will allow them to expand their branches into new markets.

On May 4th, the company noted that Citizens Financial Group was planning on buying them out, ultimately making them one of the ten largest commercial bank holding companies in the United States. The cash price is expected to be $44.50 per share, or $10.5 billion, and is expected to close in the fourth quarter of 2004.

CF closed today (Thursday, May 20th, 2004) at 42.33 and has a bullish price objective of $58.00 on their point and figure chart.

One thing to note is that you need ten shares (as opposed to one) to cooperate in their dividend reinvestment plan.

Broker Recommendations

Strong Buy         2
Buy                3
Hold              16
Sell               0
Strong Sell        0

Brokers Covering  21


DRIP Information:
Shares to Qualify = 10
Auto-reinvestment = No
Accept Foreign Accounts: No
Temper Enrollment: Yes

Min/Max Investment = $50-$5,000/month


Reinvestment Fees - 
Dividend investment fees: 0
Cash investment fees: $5.00
Auto reinvestment fees: N/A


Transfer Agent:
BankBoston
800-733-5001


Corporate Headquarters:
Charter One Bank Building
1215 Superior Avenue
Cleveland, OH 44114
Phone: (216) 566-5300
Fax: (313) 945-8465

---

Company Description

First Midwest is the premier relationship-based banking franchise in the wealthy and growing suburban Chicago banking markets. As one of the Chicago metropolitan area's largest independent bank holding companies, First Midwest provides the full range of both business and retail banking and trust and investment management services through 66 offices located in 49 communities, primarily in northeastern Illinois.

[Source: Company Press Release]

Reasons to Invest:

The fourth and final watch list candidate this week is First Midwest Bancorp Inc (NASDAQ:FMBI).

FMBI has recently fallen out of its March 03 regression channel but appears to be attempting to return to that channel on the first chance it gets. The dip out of the channel last week caused the stock to fall to oversold on the Stochastics indicator, and today's (Thursday, May 20th, 2004) strength helped to show the first signs of a lip up on the bullish lines of the MACD indicator. While the MACD is definitely in bearish territory we could see a fresh buy signal in the next week or two, signaling strength in the stock, as well as giving it the opportunity to return to its channel. Should this occur, I might be willing to move this stock from the watch list to the recommended list.

Over the past four weeks First Midwest Bancorp has been making waves through its industry, moving from the bottom 25 percent of its industry to the top 20 percent of its industry in regards to price performance.

There is a medium risk rating on FMBI at this point in time, and if we see the stock hop back into its channel this medium risk rating could be reduced to light risk.

The company has an expected dividend percentage growth rate of 12.86 percent for the next year, 8.32 percent over the next three years and 10.11 percent over the next five years. Earnings per share are expected to grow at 6.07 percent over the next year, 10.50 percent over the next three years and 15.07 percent over the next five years.

First Midwest Bancorp is currently showing signs of a Bullish Triangle Breakout on the point and figure chart. The expected (revised) price objective is currently at $53.00, but I would be happy to see FMBI trade at 44.00 by year end.

FMBI's annual dividend is $0.88, which tabulates out to a 2.68% dividend yield. Their next dividend is payable on July 20th, 2004 to shareholders on record as of June 25th. This would be the company's 86th consecutive quarterly dividend, since 1983.

This ends an exciting episode of the DripAdvisor.com Cornucopia of Candidates. Stay tuned next week, as we will spotlight another stock worthy of the DripAdvisor.com limelight.

Until Next Week,
Nich Sheldon
Editor

Broker Recommendations

Strong Buy         3
Buy                2
Hold               5
Sell               0
Strong Sell        0

Brokers Covering  10


DRIP Information:
Shares to Qualify = 1
Auto-reinvestment = No
Accept Foreign Accounts: No
Temper Enrollment: Yes

Min/Max Investment = $100-$5,000/quarter


Reinvestment Fees - 
Dividend investment fees: 0
Cash investment fees: 0
Auto reinvestment fees: N/A


Transfer Agent:
American Stock Transfer
800-962-4284


Corporate Headquarters:
300 Park Blvd., Suite 400, P.O. Box 459
Itasca, IL 60143
Phone: (630) 875-7450
Fax: (630) 875-7399

 
 

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