Mirvac Building For A Rally

This story features MIRVAC GROUP. For more info SHARE ANALYSIS: MGR

By Michael Gable 

The general chatter in the news is that markets will tread water until it is clear what is happening with Greece. Whilst it is sensible to hold back to an extent, the market has quietly put on about 150pts since the lows two weeks ago. Once we move beyond the current concerns, we will be back to worrying about something else. And then the market can continue climbing a wall of worry, leaving behind those with cash earning no interest on the sidelines waiting for a pullback. Let me make this clear, the market had fallen 500pts from its recent high. This would have to represent the lion’s share of a pullback, don’t you think?

When the Greek debt debacle blows over, investors will wake up to see a number of good companies trading down at attractive levels. Then we can expect some nice share price appreciation in quality stocks, and maybe grab a dividend along the way, before the market worries about US interest rate rises or whatever else is ahead on the horizon. We only get dips like this in the market once or maybe twice a year, so it will pay to be ready to grab any little opportunity.

Today we look at Mirvac Group ((MGR)). When looking at the chart in last week’s report, we decided to spend some time on the fundamentals to see if there was more than just a technical trade on offer.
 

With last week’s positive MGR chart prompting us to spend more time on the fundamentals, the technical view is essentially still the same as it was a week ago. MGR spent nearly 18 months forming an ascending triangle before breaking out of it earlier this year. Having taken only three weeks to rally to a high, it has then taken nearly five times as long to retest that breakout. The timing of this is quite bullish and at current levels MGR has the potential to turn around here and recommence the uptrend. A target would be a retest of February high up near $2.20.

Content included in this article is not by association the view of FNArena (see our disclaimer).
 
Michael Gable is managing Director of  Fairmont Equities (www.fairmontequities.com)

Michael assists investors to achieve their goals by providing advice ranging from short term trading to longer term portfolio management, deals in all ASX listed securities and specialises in covered call writing to help long term investors protect their share portfolios and generate additional income.

Michael is RG146 Accredited and holds the following formal qualifications:

• Bachelor of Engineering, Hons. (University of Sydney) 
• Bachelor of Commerce (University of Sydney) 
• Diploma of Mortgage Lending (Finsia) 
• Diploma of Financial Services [Financial Planning] (Finsia) 
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2

Disclaimer

Michael Gable is an Authorised Representative (No. 376892) and Fairmont Equities Pty Ltd is a Corporate Authorised Representative (No. 444397) of Novus Capital Limited (AFS Licence No. 238168). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.

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