FYI | Aug 15 2011
Daily update on share prices and consensus price targets.
By Rudi Filapek-Vandyck
We decided last week to temporarily suspend the publication of daily updates on FNArena's Icarus Signal. Judging by the number of emails and/or other enquiries we received about this decision (none) it appears everybody saw what was happening, why and the logic behind it. Little use in publishing which stocks are trading near their target if stocks fall victim to indiscriminate selling and panic exits.
Hence why we return today in a market that is noticeably in a more quiet mood, albeit with solid buying keeping the bias to the upside. At least for now.
The number one observation to make today is that Cochlear ((COH)) is back. Back on the radar of investors and back above consensus target. The latter might be a surprise if we consider the steep fall that has characterised Cochlear shares over the past few months, but one has to take into account that price targets have been tumbling recently and this should indicate that further upside does not equal the starting point in April this year. Those investors who judge shares at face value might thus be in for some disappointment thus with current price targets not reaching further than $74 and as low as $67 at the other end of the ledger.
We observe the Cochlear share price is trying to break above $74 on Monday. It'll only be a matter of time before Icarus will once again kick in, we think. We have history on our side. Alarm bells are ringing once again.
Note the number of stocks trading in the vicinity of consensus target has been decimated this month with only five remaining (after Friday's price action), including life sciences company Acrux ((ACR)) staging a remarkable come-back and Tishman Speyer Office Fund ((TSO)), another one of the popular REITs on the Australian share market, and with office exposure.
There are now 18 stocks trading above target, including the above mentioned Cochlear. The Bottom 50 sees the inclusion of Seven West Media ((SWM), Hutchison Telecom ((HTA)) and Linc Energy (LNC)). In all cases, investors should question the apparent bargains and ask instead: what is wrong with these companies?
Investors should consider the information and data are provided for research purposes only.
Stocks <3% Below Consensus
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Stocks Above Consensus
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Top 50 Stocks Furthest from Consensus
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Technical limitations
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