Finding a Bottom to Rally From: DRL, HAFC, NBS

This group of companies, Doral Financial Corporation (NYSE: DRL), Hanmi Financial Corporation (NASDAQ: HAFC), and Neostem Inc (AMEX: NBS) has been searching for a place to stage a run up from, and one of them today certainly did find a new bottom to do it from... 

Let’s begin with Doral Financial, the Puerto Rican banking concern, which was trading near $1 in mid April before taking off and hitting $2.18 in late May, a gain of 118% in ten weeks. The stock then tumbled to $1.60 by mid June. Doral Financial then surges in a great show of support and topped $2.60 earlier this month. It has since drifted back down to its current $1.93 range. That’s still a 93% gain since mid April.

The stock likes its current level; it has been here before in the beginning and end of June. You’ve got to admit this stock shows resounding strength in its bounce backs and I think it’s looking for a bottom in its current range. I don’t know if it will spike again as it has, but it certainly has the past trend lines to make one believe…

At Hanmi Financial, the stock was traveling along in May in the $1.20 range, dipped to $0.85 by late June, then spiked up past $1.20; completely regaining its losses. The stock has been trading between $1.15 and $1.20 for much of this month and seems to have settled down after its big swing. Hanmi Financial serves the Korean-American community in California. I think in its current range, the Company has found a bottom to rally from.

And Neostem, the adult stem cell developer in China and the U.S., was traveling along for a long period in the $1.40 range, with a few spikes into the $1.50 and $1.60 range and appeared to be not only testing a bottom, but testing higher levels as well. That all went out the window today as the Company announced a stock offering, to raise money, and the shares have dropped to the $1.05 range, as of this writing. Perhaps this will be the new ‘bottom’ for Neostem to rally from. A few days of trading will tell …

I haven’t, don’t, and do not intend on holding any of the companies mentioned in this article.