Email of the day (1)
Comment of the Day

August 10 2010

Commentary by David Fuller

Email of the day (1)

More on the search for quality high-yield shares
"Just a quick one in regard to individual stock picks with yield, Beazley Group BEZ might be interesting for fellow subscribers, half yearly results were excellent, as ever keep up the outstanding work it's very much appreciated."

David Fuller's view Thank you and I appreciate this contribution in the spirit of Empowerment Through Knowledge. Beazley PLC (BEZ LN) (weekly & daily) is a medium-sized holding company of specialist insurance businesses, according to Bloomberg, which operates in Europe, the USA and Pacific Region. It currently yields just over 6%, has an estimated p/e of 6 and appears to have a solid balance sheet.

The Beazley share price can be volatile - note the October 2008 to January 2009 and then March 2009 swings - which give it a V-bottom with right-hand extension base, as taught at The Chart Seminar. There is also a well established sequence of higher reaction lows and the Volume Adjusted Price (VAD) also shows a mostly bullish trajectory, indicating that the share has been under accumulation. This was interrupted recently by a very heavy volume day of director buying and selling on August 6th, with the share closing down on the day which skewed the VAD to the downside. In other words, that may have been an outlier.

Given the importance of yield in a generally low interest rate world, I welcome any information from the Collective regarding shares with attractive, covered dividends, and particularly a history of annual increases in the payout. Disclosure regarding an investment interest in those shares would also be appreciated, as they are being offered for consideration to fellow subscribers.

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