FYI | Aug 18 2011
This story features WESFARMERS LIMITED, and other companies. For more info SHARE ANALYSIS: WES
Daily update on share prices and consensus price targets.
By Rudi Filapek-Vandyck
We were reminded this week, by FNArena subscribers, how certain stocks that look cheaply priced today received a firm rejection above consensus price target earlier in the year. A few examples are…
Lynas Corp ((LYC))
As shown on the chart above, Lynas has a long history of trying to surge above target and then receiving firm rejection. We could also make the point that market darling Wesfarmers ((WES)) traded at target, albeit very briefly, back in March before the slide from $34 to $26. Wesfarmers shares are staging a come-back post the release of better than expected FY11 results. That's a major achievement in a season that is characterised by earnings misses, share buy backs and staff lay-offs thus far.
The list of stocks trading in the vicinity of consensus target ha snow grown to eight with newcomers Leighton ((LEI)), Charter Hall Retail ((CQR)) and Sandfire Resources ((SFR)) joining Riversdale ((RIV)), Valad Property ((VPG), Tabcorp ((TAH)), Monadelphous ((MND)) and Foster's ((FGL)). Investors should note these lists have been compiled on the basis of yesterday's price action (Wednesday) and tomorrow will see the removal of copper producer Sandfire as that stock got hammered today. Closer inspection of the chart below teaches us Icarus had warned us Sandfire had started flying awfully close to the sun.
The one that disappeared from the list of stocks trading close to target is gold producer Alacer Gold ((AQG)), which is receiving positive airplay left, right and centre these days. No surprise thus, the share price has been flying above consensus target, where things are turning more "interesting" given Alacer Gold shares met solid selling today after surging above target earlier. There are now 21 stocks trading above target.
In the Bottom 50, Decmil Group ((DCG)), Ivanhoe Australia ((IVA)) and Gindalbie Metals ((GBG)) have made their fresh entrance.
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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CHARTS
For more info SHARE ANALYSIS: SFR - SANDFIRE RESOURCES LIMITED
For more info SHARE ANALYSIS: WES - WESFARMERS LIMITED