BPOP up 12% today. Up 46% in 30 days...
BPOP, Popular Inc., a foreign regional bank (The Company operates in three markets: Puerto Rico, the United States mainland and providing processing and other technology services in Puerto Rico, Florida, Venezuela, the Dominican Republic, El Salvador and Costa Rica) is up 12% today.
BPOP is also one of The Volume Story stocks.
A month ago, on March 12, 2010 there was a post "Is the Volume Story trying to tell us something?", and here is what was a part of that post:
So, do you see what I’m seeing (hint: look at BPOP)?
I know, I know. Majority of you now thinks “Yeah, I see. BPOP sucks.”
But no, my Fools, that wouldn’t be a correct answer, if you ask me.
What I see is a stock that just fell behind a little, but a stock that’s really, really cheap comparing to other Volume Story stocks. And a stock that's ready to take off.
In order to just catch up with the 10% return of the S&P, BPOP would have to get to $3.03, which is a 30% gain from today’s $2.33 price.
So, in short, I think The Volume Story is telling us that BPOP is a good stock for people who are looking for easy 30% return. It's that simple.
Possibly 50%, if BPOP catches up with the average 30% return of the whole Volume Story portfolio.
You agree or disagree? Can it be this simple? I don't know. All I know is the Volume Story seems to be working...
Oce again, that was a month ago, when BPOP was still at $2.33.
Today, 46% later, BPOP is at $3.41.
Disclaimer: Money doesn't grow on trees. Do your own Due Diligence...