Fleetwood Poised For The Turn

This story features FLEETWOOD LIMITED. For more info SHARE ANALYSIS: FWD

By Michael Gable 

A few disappointments came through last week, resulting in the US being sold off the most since June. Disappointing earnings for US companies and further disagreements at the EU summit were to blame. Our market however took it in its stride, and although we are up at these stretched levels, it managed to avoid going into panic mode for the time being. The Dow appears to want to reach a new high in the short term before commencing any meaningful correction. When it does correct, we will most likely see it initially move more than the 200 points that it dropped the other night.

Last week I was looking at the [ASX 200] to rally up and find resistance at 4580. It has now done that within a few points and pulled back. I also thought that that would lead to a pullback to 4350. Yesterday’s decline on the market was fairly soft so the market is still buying dips and hasn’t gone into panic mode. We may therefore congest up for another few days before deciding which way to head next.

If you are still looking for yield but happy to grab hold of something that is a bit more cyclical and undervalued, then Fleetwood ((FWD)) is now at the right levels for the medium – longer term investor to consider purchasing.

Fleetwood

 
After peaking over $14 last year, we can see that FWD has pulled back in 3 waves and formed a double bottom here under $10. I last wrote about FWD on 2 October where I suggested that although it looked good in the short term, it should find support closer to $9. Last week’s low of $9.31 saw a lot of buying come in on very high volume (circled). This suggests exhaustion on the downside and with momentum picking up also, we should have a good low in place here. With a 7.5% fully franked dividend and a consensus target of $11.50, any dip under $10 is a buying opportunity. Strong resistance is up at $11.50. Traders need to ensure they place a stop under last week’s low.
 

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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.

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