TwinTrader Breakout (YAVY)
Yadkin Valley Financial Corp. (Nasdaq: YAVY)
Triple Top Breakout, September 30, 2008
Yadkin Valley Financial Corp. operates as the bank holding company for Yadkin Valley Bank and Trust Company, which provides consumer and commercial banking services to individuals and small- and medium-sized businesses in northwestern North Carolina. The company offers a range of deposit products comprising checking and savings accounts, NOW and money market accounts, interest-bearing deposits accounts, noninterest-bearing demand deposits, and certificates of deposit and individual retirement accounts.
Price Objective: $22.00
What’s driving this stock?
Yadkin Valley Bank’s balance sheet is not nearly vulnerable to the financial crisis as any of the large- or mid-size U.S. banks. Yadkin Valley Bank, with 24 branches, services areas of North Carolina, a state where real estate prices have, to date, held up remarkably well. Smaller well-run banks such as Yadkin Valley Bank will be a beneficiary of new customers after the economy bottoms due to the void created by larger bank bankruptcies. Fundamentally, profit margins at the bank are more than 22%; and the price to book ratio is a low 1.29.
The chart of Yadkin Valley Bank shows strength in an environment of merciless sell-offs in banking shares during the past three months. After plunging in mid-August, the stock rebounded sharply as bargain hunters scooped up shares of the bank mistakenly pronounced “guilty through association.” The 50-day moving average crossed the 200-day average in early September, trending upward ever since. The MACD is showing a bullish reading; RSI is still neutral, indicating a push up in the stock price may not hit technical resistance until the stock reaches $20. Short-term support can be found at $16. A close above $17.75 may attract more speculative buying.
Other Nasdaq stocks actively traded today include:
SIRI Sirius Xm Radio Inc 0.61 +0.04 +7.02% Volume 27,770,497
MSFT Microsoft Corporation 26.57 -0.12 -0.45% Volume 23,718,144
INTC Intel Corporation 18.08 -0.65 -3.47% Volume 16,301,001
AAPL Apple Inc 107.62 -6.04 -5.31% Volume 15,113,367
FNIX Fonix Corp Del 0.0001 0 0.00% Volume 36,218,000
DIAAF Diamant Art Corp 0.0001 0 0.00% Volume 24,384,700
CLXN Clx Medical Inc 0.0003 0 0.00% Volume 21,388,666
QMNM Quest Minerals & Mining Corp 0.0042 +0.0021 +100.00% Volume 20,650,538