FYI | Jul 28 2011
Daily update on share prices and consensus price targets.
By Rudi Filapek-Vandyck
Something's terribly wrong at Decmil ((DCG)). The company should be one of many "pick and shovel" service providers who stands to benefit from a tsunami in capex from miners and energy companies from next year onwards, but its share price continues trending lower and lower, while peers such as Campbell Bros ((CPB)) are trading near all-time highs. Not sure what exactly is happening internally at Decmil, and we're in reporting season so it's a fair guess we'll soon find out, but the divergence in share price performance between Decmil and others looks ominous, to say the least.
Irony has it, Decmil shares generated a warning from Icarus back in April when investor sentiment ran too high and the share price thought price targets should be no barrier. Well, as we all can see on the price chart today, that assumption proved incorrect. It turns out Decmil was flying too close to the sun, but it's the coming back to earth exercise that genuinely looks worrisome. Note only RBS covers the stock in the FNArena universe.
Decmil has now made its entrance into the Bottom 50, and that is seldom a signal of sustained price strength ahead. Others to join Decmil are retailer Fantastic Holdings ((FAN)), corporate phoenix Hastie Group ((HST)), telecom infra service provider Service Stream ((SSM)) and energy producer Tap Oil ((TAP)). The latter -again- underlines the dismal performance for oil and gas companies in Australia when it comes to sustainable, longer term investment returns. A theme that has featured regularly in my investor presentations of the past three years.
Meanwhile, the group of stocks trading above consensus target welcomed three newcomers: Macmahon Holdings ((MAH)), Nomad Building Solutions ((NOD)), both peer companies for the above mentioned Decmil, and Centrebet International ((CIL)). The latter is trading on take-over appeal.
The list of stocks trading close to target has welcomed four newcomers; Regis Resources ((RRL)), Charter Hall Retail REIT ((CQR)), NextDC ((NXT)), Specialty Fashion Group ((SFH)) and Ramsay Healthcare ((RHC)).
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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To see the full Icarus Signal, please go to this link
Technical limitations
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