RE:FBP oversold...
First Bancorp (FBP) is oversold
I got in Friday at 6.18 average and am anticipating the share price will rally. First target might be the 50 SMA, presently 7.13
Here are some of the factors underlying my decision to buy in:
*The RSI was under 30 Friday and has been showing oversold for the past 6 weeks.
* The chart is clearly showing long term positive divergence- the share price wants to reverse
*Friday close of 6.07 is a 30% pullback from the late July high of year of $8.70, an opportunity in my opinion.
*Short interest at 1.86% is down significantly.
*Friday's fall stopped at 200 SMA support.
*Volume is very good- the ten day average volume is running twice the 90 day average volume- Friday's volume was eight times the 90DAV.
*Resale of 28M shares at $6.75 in August had no affect on the outstanding share count or the financials.
Five insiders bought at the $6.75 offering price, though none bought heavy.
*76.3% of FBP is institutional owned including top companies Fidelity ($73M invested) and Vanguard ($64M).
*FBP is earning $50 million a quarter before tax and provision and has ample cash and equivalents, per the recent 10Q. The capital ratios are strong, also.
*Book value is $7.17- Friday's close is below book.
*The company is carrying $523 million in tax write-offs it can apply to future earnings.
*Credible analysts have issued Price Targets in the $9 (BoA) and $10 (Credit Suisse) range.
*Even with this pullback, the share price is up 43% YTD- the market believes FBP is getting healthy!
FBP is an early stage bank recovery stock that is currently offering a good risk-reward entry, in my opinion.
MG
https://bit.ly/18ieWy3
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https://bit.ly/18ieY8W#https://quotes.barrons.com/FBP?mod=DNH_S_cq
https://www.insidermonkey.com/blog/first-bancorp-fbp-are-hedge-funds-right-about-this-stock-246408/