Not Much Upside; But still a great buy at these prices
For the record; I am a shareholder (LONG). I will continue to add at these levels. I dollar cost average to avoid timing the market. For MO, I believe the fundamental turnaround is inevitable with investment in marijuana and vaping and I get paid 6+% to wait to see it.
Looking strictly technical analysis we see that the stock is clearly in a down-trend and bounced off of some critical support back in January (42s) and the 200-day MA is acting as resistance at this time. If you're not here to long, then you're entering a risky trade and I would watch for confirmation one way or the other. I
I see a long-term upward trend still intact, but this stock doesn't scream buy. I believe we will see sideways action between 44-50 as the next trading range through this year. I see this as having 10-15% downside and not much upside from these levels, although its possible to see a 10-15% swing up to the top of the channel.
The risk to the downside, as I see it on the chart, could be in the mid 20-s. If 46 breaks, then we will see 40s. You can see some points of support on longer-term trends. This could see 20s in recession, so keep some dry powder ready to buy when there is blood in the streets.
Company makes money, is trading at about 10x Forward Earnings and has several huge growth catalysts in play while paying 6.4% divvy.
Looking strictly technical analysis we see that the stock is clearly in a down-trend and bounced off of some critical support back in January (42s) and the 200-day MA is acting as resistance at this time. If you're not here to long, then you're entering a risky trade and I would watch for confirmation one way or the other. I
I see a long-term upward trend still intact, but this stock doesn't scream buy. I believe we will see sideways action between 44-50 as the next trading range through this year. I see this as having 10-15% downside and not much upside from these levels, although its possible to see a 10-15% swing up to the top of the channel.
The risk to the downside, as I see it on the chart, could be in the mid 20-s. If 46 breaks, then we will see 40s. You can see some points of support on longer-term trends. This could see 20s in recession, so keep some dry powder ready to buy when there is blood in the streets.
Company makes money, is trading at about 10x Forward Earnings and has several huge growth catalysts in play while paying 6.4% divvy.
Comment:
My prediction is that this stock will be a great trading stock with predictive moves from the top of the long-term channel to the bottom (about 40-50 and narrowing the bands over time). A lower probability result is this goes up 70s before a blow-off top ends in disaster all over...