infolinks

Saturday, May 14, 2011

Glomac maybe good for a trading buy now.

The chart above is for Glomac on 13 th May 2011 using Chartnexus.
RSI is below 30 and is curling up. Similarly, Stochastic is below 20% and curling up too.
I have inserted the linear regression lines (3 blue parallel lines overlapping the price plots). It shows an uptrend and more importantly the price is now resting on the lower regression line. There is a high probability for the price to move higher from here.
Buyback of Glomac shares is done almost daily since 11th February 2011. This buyback programme provides some support if the price weaken. As at 13th May 2011 it has a total of 2,923,300 treasury shares (0.98% of shares issued). There is mandate for it to buy up to 10% of the issued shares, so there is still  plenty of room for it to buyback more.
Currently,PE is about 13, which is fair, and dividend yield is about 5%.
Maybe can buy at around 1.72 or 1.73 and sell when it goes above 2.
Stop loss is suggested to be 1.63
This is my suggestion only and if you use my suggestion to trade the risk is yours. If you make money you can always buy me coffee.