Globe Specialty Metals Inc : USD 18.5 as an entry point
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$18.61 | $0 | $17.9 | -100% |
From a fundamental viewpoint, the company has a value in line with the industry as its enterprise value ratios show.
Concerning EPS estimates for the two coming years, they have been revised upward by analysts (by almost 80% for 2015 since September 2013). This positive fact opens the way for a better evaluation of the stock by investors.
Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the USD 18.5 area should stop this trend and allow a technical rebound towards USD 20.5. Indeed, this support has been tested many times and hasn't be broke out for ages.
Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.
The stop loss will be placed at USD 17.9.