Liquidity Services, Inc. : Close to a key point

07/11/2012 | 12:01pm Opinion : Bullish above 38 USD Target price : 51.2 USD Stop loss: 37.8 USD

NASDAQ IT Services / Consulting

Liquidity Services Inc. mission is to provide business and government clients and buying customers the world’s most transparent, innovative and effective online marketplaces and integrated services for surplus assets.

From a fundamental viewpoint, the company has undeniable qualities. Growth is likely to be strong because the Thomson Reuters consensus counts on sales increase for the current year, with huge growth of net margin, for 2012 is expected at 11% against 3% in 2011. Also EPS is regularly revised upward by Thomson Reuters’ analysts.

Technically, since June the share sharp fall, losing nearly 50% of its value. The bearish trend seems be stopped by short-term support. In weekly data moving averages are well oriented. For this reason we could forecast a recovery on the stock. We suggest a long position in order to aim as first target USD 51.2. A stop loss will be placed at USD 37.8.

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