Tne final stock that could be setting up for a major breakout is Knightsbridge Tankers (VLCCF), a company engaged in the international seaborne transportation of crude oil and dry bulk cargoes.
Shares of Knightsbridge Tankers are approaching some previous resistance at around $19.34 a share. If the stock can manage to move above that level, and get above its 52-week high of $19.86, then it will be in official breakout territory. I would consider this move very significant because the stock won't see any significant resistance until it reaches $24 to $26 a share. That leaves room for some very nice upside on a breakout that has lasting power.
It's worth noting that on Aug. 12, the company reported an 88% surge in second-quarter revenue that came in at $26.3 million versus $13.9 million a year earlier. Profits also jumped with net income coming in at $13.4 million as compared to $3.1 million for the same period a year ago. This strong fundamental backdrop could help to push Knightsbridge into breakout territory.
This is also another breakout candidate that pays a great dividend with the company shelling out $2.00 a share at a 10.70% yield. The payment date is coming up on Sept. 7, so you could get a buying opportunity on any weakness into that event.To see more breakout action in stocks such as VMware (VMW), Red Hat (RHT) and Banco Frances Del Rio SA (BFR), check out the Breakout Stocks of the Week portfolio on Stockpickr.
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