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Stock Profile: WMB

March 17, 2015

By | 3 Comments

Williams Company, Inc.

WMB is a growing energy company that focuses on the growing global supply of North American natural gas and natural gas companies.  While crude oil has caused many energy companies to fall dramatically over the past few months and crude continues it massive bearish streak, there are some energy companies that have bottomed out to a certain extent and started to reverse.  WMB has very good fundamentals with a market cap of 34.9 billion, a PE ratio of 16.52, and a PEG of 0.92.  These are undervalued traditional numbers but one reason I like WMB (might make the Tackle 25 next Month) is that it has already shown signs of reversing with the inverted head and shoulder pattern.  It also has a Cash Flow Expectation (CFE) of 3.2% monthly without margin and a dividend of 2.32 and 4.96% yearly.

Let’s take a look at the daily chart where you can clearly see the inverted head and shoulder with confirmation above prior resistance.  The Stock has also retraced into the prior resistance level with confirmation on both the prior pivot and 50 SMA.  I like WMB as a swing trade with stock or options or as a long term cover if you are also short crude in any capacity with covered calls or naked puts to enter into a long term investment.  There is little risk in the trade as the stop loss would be placed immediately under prior pivot of Resistance at 43-44 for short term traders and under 40 for longer term traders with the covered call.  The weekly chart has major support at 40.00.

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3 Replies to “Stock Profile: WMB”

  1. Thanks Matt. I’ll be watching the FOMC report tomorrow and how it affects this stock.

    1. Nice call on WMB Matt!

  2. Avatar Mauricio Uribe says:

    @matt

    This one’s paying off. Up 19% since you published the article. Also getting good returns on VLO.

    Thanks Matt!

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