Icarus Signal New Entries For Today

This story features ROCKETBOOTS LIMITED. For more info SHARE ANALYSIS: ROC

Daily update on share prices and consensus price targets.

By Rudi Filapek-Vandyck

Walter Diversified ((WDS)) should have left the bad, bad days of fiscal 2010 behind and now be looking forward to some robust growth in the years ahead. How much should investors pay upfront while management is restoring investor confidence and super-charged profit growth? That remains the Big Question hanging over today's share price.

As regular readers/followers of FNArena's Icarus Signal might have picked up, WDS shares have a long legacy of trying to leave stockbroker price targets behind, but gravity has proved too strong and the result is for constant switching in between selected groups of stocks trading above or just below consensus target. Note there are only two brokers in the FNArena universe that cover Walter Diversified and one (Macquarie) has been trying its best to represent the more conservative approach with the other (JP Morgan) representing a more bullish picture for the shares.

At times, however, WDS shares surge to well above JP Morgan's target and then you know Icarus warnings are about to show their true worth.

WDS shares have returned back below consensus target, but it would take only one or two strong up-days and the shares could once again be in the vicinity of JP Morgan's $0.81 price target. As yet, we don't know when exactly WDS is planning to update the market with its fiscal 2011 numbers, but it'll be interesting to see whether JP Morgan and Macquarie will converge after the event, and who will move closer to the other.

Walter Diversified joined QR National ((QRN)) in leaving the stocks trading above target yesterday and joining the group of stocks trading close, but below consensus targets instead. Given today seems to be shaping as an up-day, we reckon QR National will be re-joining the stocks above target soon.

The group of stocks trading close but below target has been decimated to five remaining stocks only, including WDS and QRN. The group of stocks trading above target counts 17 members and gold producer Kingsgate ((KCN)) has now left the first group in order to join those above target.

The Bottom 50 has welcomed ROC Oil ((ROC)) and Aquarius Platinum ((AQP)) as more indications this year's share market weakness in July and August is pushing many energy and resources stocks to price levels well, well, well below price targets. Something investors might keep in mind when constructing their long term investment portfolios, considering we probably won't have seen the last period of risk-on/risk-off reversal.

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 QRN $ 3.25 $ 3.28 0.89% 2 WDS $ 0.72 $ 0.74 2.80%

Stocks Above Consensus

Order Symbol Current Price($) Consensus Price($) Difference(%) 1 KCN $ 9.20 $ 9.12 – 0.87%

Top 50 Stocks Furthest from Consensus

Order Symbol Current Price($) Consensus Price($) Difference(%) 1 ROC $ 0.27 $ 0.47 77.36% 2 AQP $ 3.51 $ 6.20 76.64%

To see the full Icarus Signal, please go to this link

Technical limitations

If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.

Click to view our Glossary of Financial Terms