Pact Rally Intact

This story features PACT GROUP HOLDINGS LIMITED. For more info SHARE ANALYSIS: PGH

By Michael Gable 

The news of note during the last week is how the US economy added 295,000 jobs instead of the 235,000 expected, leading to a fall in US unemployment from 5.7% to 5.5%. By moving into the Fed’s target band, the prospect of rate increases in the US has moved forward. This has led to a rise in bond yields, and a sell-off in equity markets. The Australian market yesterday therefore had its worst day in two months. Interest rates here in Australia are still on the way down however, despite the RBA not shifting the cash rate last week. They will therefore likely make another cut in April or May. We still maintain a positive view for our market medium to longer term, and continue to naturally remain cautious in the short term.

Today we take a look at Pact Group ((PGH)).
 

PGH has been trending higher for a year now, at a rate that appears quite sustainable. It quickly rallied higher before its interim result, before being sold down to the bottom of the range. You will notice that it had bounced strongly from the uptrend line last week. As long as it doesn’t head lower than the low $4’s, then the overall trend is still to the upside and the chart for PGH is therefore still positive. In terms of entry point, it would be around these levels in the low $4’s and investors can therefore run a tight stop if it were to breach this uptrend.

Content included in this article is not by association the view of FNArena (see our disclaimer).
 
Michael Gable is managing Director of  Fairmont Equities (www.fairmontequities.com)

Michael assists investors to achieve their goals by providing advice ranging from short term trading to longer term portfolio management, 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 (No. 376892) and Fairmont Equities Pty Ltd is a Corporate Authorised Representative (No. 444397) of Novus Capital Limited (AFS Licence No. 238168). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.

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