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

Does valuation count? Here at FNArena we happen to think it does, a lot, and the Icarus Signal provides us with daily examples as to why investors should pay attention. Few will dispute Iress ((IRE)) is a solid, well-managed company with solid, strong growth prospects. At times, however, the shares simply become too popular and this then leads to elevated valuations being priced in, which ultimately leads to the share price exceeding stockbroker price targets, which then leads to Iress appearing on the Icarus Signal.

The shares peaked above $9.60 earlier in the month and they have been in a relentless downtrend since. At yesterday's closing share price, shareholders who ignored valuation and bought in at the peak have now lost more than one full dollar. That's gotta hurt.

Similarly, and as pointed out yesterday, another traditionally popular stock, Monadelphous ((MND)) has now equally returned to earth, falling from $22+ to below $18, presently stabilising above $18. It goes without saying both stocks represent much better value at these levels than at their peaks of only a few weeks ago.

Meanwhile, the speed at which stocks such as Iress and Monadelphous disappear from the Icarus Signal's radar is simply breathtaking, to say the least. The list of stocks trading near target has now shrunk to nine only, with Charter Hall Office ((CQO)), Pharmaxis ((PXS)) and Abacus Property ((ABP)) replacing DuluxGroup ((DLX)), Melbourne IT ((MLB)) and Warrnambool Cheese ((WCB)). For all these stocks, with the exception of Abacus, price weakness is to blame.

Mining services provider Walter Diversified ((WDS)) put in a big rally yesterday, which pushes the stock back on the list of stocks trading above target. This group has now shrunk to 16 in total, including the likes of Oaks Hotels & Resorts ((OAK)) and Foster's ((FGL)) for whom corporate interest has announced itself.

At the more speculative end of the market, Kula Gold ((KGD)) and Northern Iron ((NFE)) have now joined the Bottom 50.

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

Stocks <3% Below Consensus

Stocks Above Consensus

Top 50 Stocks Furthest from Consensus

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

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