Okay, so you’ve been reading the papers, listening to stock gurus, and talking to your pals about subprime lending and how horrible the banking industry is right now. Everywhere you turn it just seems like there’s another depressing log to add to the fire.

What you don’t hear are banking stocks that actually make the grade. Ones that have proven themselves time and time again.

Just when you thought the banking establishment was down and out, there’s one knight in shining armor winning a profitability battle. The flight of capital to quality banking stocks has already begun.

I found a banking play you’d actually be proud to own. Imagine bragging to your friends how much money you’ve made in an industry no one would touch with a ten-foot pole right now.

Since early 2001, shares of Wainwright Bank & Trust, ticker symbol W-A-I-N, have rocketed from a mere $4 to $13.98 at its recent peak. When you look at the stability and price appreciation attached to this stock, it’s hard not to get excited.

Believe me, I know what’s at stake here. You’re probably thinking is this guy feeling okay today. Well, the obvious answer to that one would be yes, and before you shake your head, let me explain the situation that is currently developing over at Wainwright headquarters.

I mean, we’re talking about a company that has done nothing but go up. And all of this has happened right in the face of a market recession and plenty of pullbacks.

I’m not talking about some fundamentally sound investment idea that may take years to reap solid returns.

The company I’ve mentioned is technically really to lift off. The real question is whether or not you have the guts to play contrarian and pick up shares in a banking play that is bucking industry trends.

If your answer was yes, then get ready to make some money. This stock best resembles a ladder. It’ll rise quickly, level off, gathering momentum, and then surge once again. It’s just one step after another in methodical fashion. Who doesn’t love a predictable stock?

Now, most investors out there jump into lucrative investment ideas at the worst time — near the top. Who could blame them – it’s the most exciting time to be in a play. Exciting, however, does not make one a great investor. Instead, you’re better off waiting for the stock to consolidate and buy at the very beginning of a breakout.

Using this philosophy, I stumbled upon Wainwright. The stock is quickly approaching a buying point and it’s probably safe to say that you could get the best possible price by jumping sooner rather than later.

Our recommendation: Buy shares of WAIN at or near $12.96 and place a stop loss 5% below your purchase price. Once the stock breaks out from its sideways trend it’s GOODBYE HORSES.

Good investing,

Stephen Oakes
Editor, Volume Spike Alert & Black Sheep Trader