Trading Idea: HFF Inc. (HF) On The Verge of Complete Breakout Pattern
It may be a little pre-emptive, but with HFF Inc. (NYSE: HF) on the verge of completing the handle portion of a cup and handle pattern, the time to step in may be sooner than later. Why? Stocks tend to accelerate pretty quickly once the barrier’s been broken.
In this instance, the chart’s renewed strength is actually reflective of the impending financials. HFF Inc. had been taking losses, but managed to break-even last quarter. The company’s expected to earn $0.02 per share for Q4 of 2009, and a total of $0.24 per share in 2010. Though that still leaves the stock on the expensive side, the chart’s suggesting that the market doesn’t care.
As a mortgage play, HFF Inc. feels risky at this juncture. However, aside from the fact that it’s a contrarian idea, even a tepid improvement in real estate lending is an improvement.
The proverbial line in the sand is around $7.00.
