Ashley Services Group has begun a new uptrend. This is marked by the breakout on significant volume of the 200EMA (daily). The price has consolidated since the break for a number of weeks. The exit for this position is set at two days trading below the 200EMA, or one day if the move is a significant break. My entry at 18c is limited by 9% downside to the 200EMA.
This is a long term momentum-based position. There is no target price for this position - it has unlimited upside and downside limited to 15% - both based on crossing the 200EMA.
From a fundamental point of view the company has recently shown some strong evidence that it has successfully turned itself around from recent losses. Continual improvement in earnings is likely to fuel growth over the medium-term. The company is currently trading on a trailing P/EBITDA ratio of around 4.5, which is by no means demanding.
This is a long term momentum-based position. There is no target price for this position - it has unlimited upside and downside limited to 15% - both based on crossing the 200EMA.
From a fundamental point of view the company has recently shown some strong evidence that it has successfully turned itself around from recent losses. Continual improvement in earnings is likely to fuel growth over the medium-term. The company is currently trading on a trailing P/EBITDA ratio of around 4.5, which is by no means demanding.
Comment:
A test of the 200EMA during the recent volatility occurred and the SP held. Monitoring closely any breaks to the downside.
Comment:
After holding support at the 200EMA the share price has rocketed up 35% today on reasonable volume! No official news has been forthcoming. Someone must know something... The benefits of a momentum approach...
Comment:
Solid result recently added more momentum to the SP with it briefly touching 30c. Momentum still well intact and will consider adding upon test of 200EMA.
Comment:
The share price is sitting at 28c (plus a 3 cent dividend was paid recently). 72% paper profit. However, stop loss is currently at 20c which is a long way back!