KOTM did a simple scan for the largest beta in popular indices. These indices include the DJIA, S&P 500, and the Russell 2000. In the Russell 2000, the largest beta belongs to AUMN. In the S&P 500, the same crown belongs to AIG and finally in the DJIA, BAC wins. These are three very interesting names that deserve a closer look.
AUMN is Golden Minerals Company. The firm is a precious metals producer, primarily engaged in the operation and further development of its acquired Velardena gold, silver and base metals mines in the State of Durango, Mexico and other geographic areas, but the stock is under $3.00. With that in mind, most folks don’t follow cheap (nominally) stocks, but it has a 9.8 beta.
The other two stocks are BAC (with a 2.4 Beta) and AIG (with a 3.5), both of which are a little more well known than AUMN. The financial firms are increasingly gaining interest from investors as interest rates are expected to increase. Both of these stocks are involved in the financial services industry to a certain extent and, interestingly enough, these stocks are also some of the most popular hedge fund picks too.
From a technical prospective, the BAC and AIG charts are presented below. The financials have been in rage mode of late, but over the last week decided to come into their respective 50 DMA’s, maybe a solid trade point. The moving averages, for both stocks, are pointing up and looking bullish, but these are risky picks…as measured by beta.
