First Financial Bankshares Inc. (NASDAQ: FFIN) Q3 2011 Price Target

Recent price: 32.41$

P/E Ratio: 18.30

3 Months Target Price: 36$

Company Description

According to Reuters, First Financial Bankshares, Inc. is a financial holding company. Through its wholly owned subsidiary, First Financial Bankshares of Delaware, Inc., it owns 11banks, a trust company, a technology operating company, and an insurance agency. As of February 24, 2011, these subsidiaries were First Financial Bank, National Association, Abilene, Texas; First Financial Bank, Hereford, Texas; First Financial Bank, National Association, Sweetwater, Texas;; First Financial Bank, National Association, Eastland, Texas; First Financial Bank, National Association, Cleburne, Texas, and First Financial Bank, National Association, Stephenville, Texas. Through its subsidiary banks, it conducts a full-service commercial banking business. Its service centers are located in North Central and West Texas. As of December 31, 2010, it had 52 financial centers

Confidence Margins

Strong resistance $37.14 (+15%)

Light resistance $35.50 (+10%)

Light support $32.00 (-1%)

Strong support $30.67 (-5%)

Recommendation

This financial holding company has been under pressure as the broad market took a dip. First Financial Bankshares still has some value left and will reward it's investors over the coming weeks.

Entry strategy

For the cautious investor:

Buy the stock for 33$ or less.

For the risk-taking trader:

As the company has no publicly traded option contracts, the use of leverage might be the way to get some excess return on this position.

Exit Strategy

For the cautious investor:

Sell when the stock reaches 36$, or keep it until 37$ if you are more bullish in your own analysis.

For the risk-taking trader:

Same strategy as for the cautious investor.

TD Ameritrade Holding Corp. (NASDAQ: AMTD) Q3 2011 Price Target

Recent price: 18.74$

P/E Ratio: 17.95

3 Months Target Price: 22$

Company Description

According to data provided by Reuters, TD Ameritrade Holding Corporation is a provider of securities brokerage services and technology-based financial services to retail investors, traders and independent registered investment advisors (RIAs). The Company provides services through the Internet, a national branch network and relationships with RIAs. The company is under significant influence by Toronto Dominion Bank.

Confidence Margins

Strong resistance $22.90 (+22%)

Light resistance $21.56 (+15%)

Light support $18.55 (-1%)

Strong support $16.73 (-11%)

Recommendation

As many stock brokers, TD Ameritrade is currently undervalued because of low volume on many stock exchanges. This is a play for those seeing an increase in the trading volume in the coming months.

Entry strategy

For the cautious investor:

Buy the stock for 19.50$ or less.

For the risk-taking trader:

The June 2011 19$ out-of-the-money call option contract seems to be the right position to take, they can be acquired for about 150$ per contract.

Exit Strategy

For the cautious investor:

Sell when the stock reaches 22$, or keep it until 23$ if you are more bullish in your own analysis.

For the risk-taking trader:

The contracts should be kept until the underlying reaches 22$. This should provide a very interesting return if the underlying reaches the target price as the contracts will get in the money.