This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Telco Stocks to Trade This Month

Cincinnati Bell

Last up on our list of tradable telcos is Cincinnati Bell ( CBB), a small-cap phone carrier that's posted some distinctly different price action over the last year. While most other communications stocks are up quite a bit in 2013, CBB is actually down more than 36% year-to-date. But there's still a trade to be made in this stock right now.

CBB made a parabolic drop in the first quarter of the year, falling from a price in the mid-$5 range to a 52-week low in the high $2s. But shares have been staging a comeback from those lows, and it's been an orderly one. Since bottoming in March, CBB has been trading higher in a very well-defined uptrend. That series of higher highs and lows makes CBB an interesting opportunity for traders looking for a telco trade with ramped up risk/reward - this is a much more volatile stock.

With shares testing trendline support today, I'd recommend being a buyer on the next white-bar day. Just keep a tight stop in place.

Momentum adds some confidence to this trade too. 14-day RSI has been in an uptrend since just before CBB bottomed, and it's continuing to push higher. Since momentum is a leading indicator of price, that bodes well for this beaten-down telecom stock in the second quarter.

To see this week's trades in action, check out the Technical Setups for the Week portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.


Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to
TheStreet . Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily , and on Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji
6 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
BCE $45.99 -1.69%
CBB $3.94 0.00%
BT $33.00 0.21%
VZ $50.68 -1.25%
VSAT $76.04 1.28%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs