Technicals | Oct 09 2012
By Michael Gable
[Note: the following is an excerpt only. For the full report see details below. Ed.]
The beaten up media stocks are having their time in the sun here. Much is being made of the rumours of Seven West Media ((SWM)) going private, but the real volume is in APN News & Media ((APN)) and ten Network ((TEN)). They look like the better trades in my opinion. Today I have also updated my thoughts on some blue chips – QBE Insurance ((QBE)), Cochlear ((COH)), and Woodside Petroleum ((WPL)). One great buying opportunity here is United Group ((UGL)). It is a fairly safe utility that has very good upside potential. Finally, I have looked at how the price of oil is trading from a longer term perspective. Have a look at my attached article from The Australian this morning. Once oil breaks out of this consolidation, it has the potential to rally up to US$40.
I am seeing similar accumulation in the UGL as I did with APN. After dropping heavily after its annual report in August, we have seen a lot of volume go through UGL at these lower levels with a notable increase in momentum. If UGL had further to fall, the volume would be very low as it eases up here. But strong volume at a two and a half year low suggests that large holders are accumulating the stock. UGL pays a decent 5.6% fully franked dividend, and being a utility, you would expect it to hold up well if the market undergoes a correction. When UGL breaks out of this base, we could see it trade a dollar higher quite quickly, with traders eventually looking for the gap to be filled just under $13.
Content included in this article is not by association necessarily the view of FNArena (see our disclaimer).
Visit Michael Gable's website at www.michaelgable.com.au/.
After leaving Macquarie Bank's Securities Group in 2008 after many years of service, Michael has gained a highly regarded reputation in the financial services industry. As a Private Client Adviser with Novus Capital, Michael has become a popular live commentator and analyst for Sky News Business Channel’s “Your Money, Your Call” program. He is also the author of the weekly stock market report “The Dynamic Investor”.
Michael assists investors to achieve their goals by providing advice ranging from short term trading to longer term portfolio management.
Michael 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 (Rep. No. 376892) of Novus Capital Limited AFSL 238168 ACN 006 711 995. Michael Gable and Novus Capital Limited, their associates and respective Directors and staff each declare that they, from time to time, may hold interests in securities and/or earn brokerage, fees, interest, or other benefits from products and services mentioned in this website. This website may contain unsolicited general information, without regard to any investor's individual objectives, financial situation or needs. It is not specific advice for any particular investor. Before making any decision about the information provided, you must consider the appropriateness of the information in this website or the Product Disclosure Statement (PDS) or Financial Services Guide (FSG), having regard to your objectives, financial situation and needs and consult your adviser. Any indicative information and assumptions used here are summarised and also may change without notice to you, particularly if based on past performance. Michael Gable and Novus Capital Limited believes that any information or advice (including any securities recommendation) contained in this website is accurate when issued but does not warrant its accuracy or reliability. Michael Gable and Novus Capital Limited are not obliged to update you if the information or its advice changes. Michael Gable and Novus Capital Limited and each of their respective officers, agents and employees exclude to the full extent permitted by law, all liability of any kind, in negligence, contract, under fiduciary duties or otherwise, for any loss or damage, whether direct, indirect, consequential or otherwise, whether foreseeable or not, to the extent arising from or in connection with this website.
Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.
