TA for Ausgroup,
- Trend - Side,
- Momentum - Moderate
- Support - 0.31,0.26
- Resistance - 0.37
- Volume - Surge in volume
- Candlestick - Engulfing
From the daily TA chart, Ausgroup is now near resistance. It is still trending at SIDE. Will it be able to reach a new high? The high volume is quite an interesting signal for us to look at it closely. But is it also important to track back the past TA for more information.
From the Weekly TA chart, something important for us to take note is that very time, when there was a surge of high volume. Definitely, it will attract traders and subsequently, it goes down. it's quite an abnormal behaviour. So the history is now repeating itself? Will you trade for this stock? Or do you believe this company has a strong fundamental? Maybe, we should look at the Annual Report for FY 2011. How they make money?
Looking at the simple FA,
- NAV - 0.39 ( slight discounted NAV)
- Yield - 1.73% (below inflation rate)
- PE - 10.6x (need to calculate EV/EBITDA for Fair PE estimation)
Personally, from the Finance highlight, this type of industry is high revenue but low margin business. It has poor cash flow generated from Operating Activities (-116%). The financial health of the company is not that fantastic.
My advice is to stay away from such stock, as it might be a trap for retail investors and the financial health of business nature is not that attractive.
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