Icarus Signal New Entries For Today

This story features IRESS LIMITED, and other companies. For more info SHARE ANALYSIS: IRE

Daily update on share prices and consensus price targets.

By Rudi Filapek-Vandyck

Sometimes the most interesting story is not amongst stocks that continue yoyo-ing in between below and above consensus target, but amongst those that rose, then fell, and subsequently failed to return.

Iress ((IRE)) is one such fine example. I read a technical analysis oriented report on the company a few days ago and the author expressed his surprise about the complete lack of any sustained direction for the Iress share price over the past year or so. There was no easy explanation and the author does not use the tools available at FNArena, so no mentioning of the Icarus Signal, or consensus price targets.

Readers who've kept track with my daily updates on the Icarus Signal know that Iress is a relatively popular and highly regarded growth stock. Which means the share prices runs up too high on a regular basis, subsequently gets rejected above target and then spends a bit of time in preparing for the next attempt to break the valuation limits as represented by the consensus target.

This is why Iress appears on a regular basis on the radar of the Icarus Signal. Post the latest rejection, however, the shares have failed to climb their way back. At the moment there does seem a lack of momentum and Iress shares are trading some 5% below consensus target at $9.37. If my memory is correct, technical resistance was defined at the $9.40 level which is pretty similar to where the target is (and not the first time consensus target and technical resistance are at a similar price level).

Should we become worried about the outlook for Iress? Not at all. A quick look at the price chart for the past nine months immediately shows Iress shares tend to pause for about two months before re-appearing above target. In the present case this will coincide with the August reporting season.

Meanwhile, six newcomers have (re-) entered the list of stocks approaching target and only Goodman Fielder (GFF)) is doing so on the back of a weakening share price. Regular readers know the normally very boring Goodman Fielder is these days spending a lot of time yoyo-ing under and above consensus target. Apart from a big dividend, the stock also offers take-over appeal which in the present market context is probably what really drives the share price.

Five others joined Goodman Fielder carried by strength: Campbell Bros ((CPB)) after announcing a small acquisition, Regis Resources ((RRL)), SP Ausnet ((SPN)), Austbrokers Holdings ((AUB)) and ING Office Fund ((IOF)).

Mining services provider Lycopodium ((LYL), also a regular yoyo in and out these tables, has now left the above group to join Treasure Wine Estates ((TWE)) in trading above target. Foster's offshoot TWE is carried by corporate appeal, similar to Foster's itself. Maverick Drilling ((MAD)) which is yet another services provider to the energy and mining sector, has joined the Bottom 50.

There are now 14 stocks trading within reach of their target and 22 above target.

Investors should consider the information and data are provided for research purposes only.

Stocks <3% Below Consensus

Order Symbol Current Price($) Consensus Price($) Difference(%) 1 AUB $ 6.45 $ 6.64 2.91% 2 CPB $ 46.33 $ 47.03 1.51% 3 GFF $ 1.04 $ 1.05 0.97% 4 IOF $ 0.65 $ 0.67 2.92% 5 RRL $ 2.55 $ 2.61 2.35% 6 SPN $ 0.94 $ 0.96 2.78%

Stocks Above Consensus

Order Symbol Current Price($) Consensus Price($) Difference(%) 1 LYL $ 6.03 $ 5.98 – 0.83% 2 TWE $ 3.67 $ 3.50 – 4.63%

Top 50 Stocks Furthest from Consensus

Order Symbol Current Price($) Consensus Price($) Difference(%) 1 MAD $ 0.23 $ 0.36 56.52%

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