Morgan Stanley research says, "2011 will be a year of positive volume growth, increased pricing power, opportunistic debt refinancing, rapidly expanding cash EPS and share buybacks."While the stock displays various attractive characteristics of a value stock, I wouldn't buy it for that reason. I would buy it because the steady trading range provides an opportunity to make money short-term. The stock was trading solidly between $29-34 prior to the Financial Meltdown of 2008. Since its recovery, it has spent the last year trading between $28-32, and now appears ready to establish a higher trading range. For a short-term trade, I would be a buyer under $30.50 and put in a sell order at $33.50. The opportunity could arise to make this trade several times in 2011.
The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also manages Goodfellow LLC, a subscription-only stock market website. We strive to identify financially healthy companies in which traders and investors can buy shares and earn dividends and capital gains. See disclaimer for the risks associated with investing in the stock market. See your tax advisor for the tax consequences of investing. See your estate planning attorney to clarify beneficiary and inheritance issues associated with your assets.