Upside For Corporate Travel

This story features CORPORATE TRAVEL MANAGEMENT LIMITED. For more info SHARE ANALYSIS: CTD

By Michael Gable 

All eyes are on the Fed decision due Thursday morning AEST. Expectations are that they will raise rates which ultimately will be a positive catalyst for the share market. With the S&P/ASX 200 Index unexpectedly testing 5000 again, investors will be looking for the next rally off the lows. If we look for the positives in the recent market rout, the fact that we have been down here for a few months means that the longer we stay here, the more frustration that builds, which means the greater relief when the market enters its next bullish phase, which means the more buying that comes back in on that bounce. When that happens, not if, can only come sooner rather than later. In the meantime, we have to continue trying to almost ignore the market and concentrate on quality stock-picking, such as those recent trades of ours which have been nicely outperforming the market.

Today we look at Corporate Travel Management ((CTD)).
 

After briefly dipping under $10 a few months ago, the stock then went on to break the downtrend that started earlier this year, moving towards striking distance of our initial $12 target. You will notice that this downtrend is merely a small correction against a longer-term uptrend, which is a positive sign for the medium-longer term. Since breaking out several weeks ago, CTD has eased back over a dollar here to retest that smaller downtrend. The stock is unlikely to test $10 again soon, even though that would be a preferable entry point. The momentum is now here in CTD, so it will probably resume the uptrend and push through $13 over the next few months.

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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