Monday, May 23, 2011

RSY XXXVII: No More Gas {EGAS}

Sabrient downgraded EGAS to Sell and thus RSY recommends unloading the remainder of the holdings. Sabrient's analysis states that, "EGAS's weak showing for Sabrient's key growth and momentum measures earns it a Sell rating." Those are troublesome enough facts but also EGAS's Earnings Score and Balance Sheet Score are subpar. RSY recommended opening an initial position of 400 shares based on a $100,000 portfolio on November 15th, and then recommended unloading half on January 13th. RSY suggests placing a sell limit order of the 200 remaining shares of EGAS at $11.19 (GTC) at the opening bell. That should net us a couple of hundred of capital gains for this transaction and around $111 for the last sell and $72 in dividends including the one scheduled for distribution at the end of the month.

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