iProperty Set For A Run?

This story features REA GROUP LIMITED. For more info SHARE ANALYSIS: REA

By Michael Gable 

Last week we wrote about our market finding a low. The S&P/ASX200 Index stuck to the script and gave us the best weekly return (4.5%) in nearly four years. It will be slow going from here but expect a recovery through to Christmas.

A stock that is looking very interesting is a smaller disruptive company called iProperty Group ((IPP)). It is doing similar things to REA Group ((REA)) but in Asia – so much so that REA is creeping up on the register with a shareholding of over 22%. Softness over the next few days or so will see us pick up a few more interesting opportunities that have been relegated to the sidelines during the recent market drop.

 

For the nine months from mid 2013, IPP rallied from less than 80c to over $4. A year and half later has seen the share price track sideways in a large band. It has been using up time to absorb such a big move but you will notice that the range has tightened. This shows us that it is just a continuation pattern which means when the time is right, IPP could break out of this sideways band and resume the uptrend. That breakout appears to have occurred last week on the back of some news to the market. As a result, IPP should continue heading higher, ultimately surpassing the 2013 high above $4.
 

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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