High Return Stock - OFG

The US banking industry is in a turnmoil. However it doesn't necessary mean people whoever invest in banking stocks are losers. For people who invest in Oriental Financial Group(OFG), a financial holding company in Puerto Rico, the subprime mess seems to be a non-factor. So for the past 52 weeks while blue chip banks such as Citigoup (C) lost more than 60% in stock value, OFG got an amazing 80% gain for the past 52 weeks and surged almost 200% since last July. And the P/E ratio is still at a reasonable 14.75, compared with Citigroup's 28.

The Positive
Perfect technical chart. Both 50 day and 200 day moving averages are rising with MACD above 0 and KD also rising.

From the financial chart, the company's revenue for 2007 should surpass 2006. And seeing the commpany buying back stocks in the latest quarter is also a good sign.

The company recently declares quarterly dividend of 14 cents per share for shareholder on March 31 so this would definitely be a good time to buy.

The Negative
The officer and director have been selling stocks this year along with institutions selling 3 million shares. This hopefully is just profit taking.

Conclusion
This is a banking stock not in trouble and with perfect technical chart and great financial statement, this is the stock to own to escape the US subprime mess.

High Return Stock - ADM

While many stocks experienced major downfall during the past few month, holders of this stock were having a great time seeing the price went from $35 in November of last year to $45 in January. So who's the lucky one? Archer-Daniels-Midland Co. (ADM), the Illinois based diversified agricultural processor has been on a roll since last November. And with P/E ration at 12.78, far below its competitors, maybe it is too early to say the party has ended.

The Positive
Greate technical chart. The stock is trading above 50 day and 200 day moving average. KD is turning up again signaling new rally.

From the financial chart, the company's revenue and profit continue to grow for the past three years. Plus it's a good sign to see the company buying back a lot of stocks last year based on the cash flow chart.

The company pays quarterly dividend of 13 cents per share, another good sign of a stable company. The industry the company is in also is a growing sector - think commodity and ethanol.

The Negative
So if the stock is so under-valued that the company has been buying back stocks why the directors and officers kept selling stocks this year? Not only the employees, the institutions also sold about 368,564 shares.

Conclusion
Even though the stock has rose $10 for the past 52 weeks, the stock has great technical and fundamental. The insider sellings hopefully are just profit taking.