A Bottom For SiteMinder Shares

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This story features SITEMINDER LIMITED.
For more info SHARE ANALYSIS: SDR
The company is included in ASX200, ASX300, ALL-ORDS and ALL-TECH

Fairmont Equities' Michael Gable sees a bottom in place for shares in SiteMinder.

By Michael Gable

Today marks the end of the financial year and as usual, the past few weeks has seen a bit of volatility in the local market as investors make selling decisions to square off the year.

In the US, we can see a level of rotation taking place and that adds to some messiness in the short-term.

However, we need to remember that the money has to go somewhere, so while there are losers in one part of the market, more often than not there are winners elsewhere.

This was clearly evident in the Australian market during the past 12 months where the index made little headway, but there was a massive divergence between resources on the one hand, and tech and healthcare on the other.

We believe that the next catalysts for markets will revolve around the expectations for US interest rates.

The past couple of weeks has seen markets worry about rising rates, and this has seen a spike in the US dollar which of course has resulted in some heat coming out of commodities.

However, the next big move would be if/when markets realise that rates can’t or won’t be lifted higher.

Looking at US yields, the bond market doesn’t seem to be panicking as much as the equity markets. As we head into a new financial year, it will be interesting to see if stocks outside of resources start to pick up.

There are some green shoots in some select stocks, but at this point we still believe stock selection is crucial and the bulk of high P/E, long-duration stocks, could still see their share prices vulnerable to a bit more deflation.

Today, we offer a technical view on SiteMinder ((SDR)).

Like most tech stocks, SDR peaked in October and then trended lower for several months.

After building a small base across March-May, it then broke higher at the end of May by pushing beyond resistance at $3.50.

It came back to retest that breakout and is now heading higher again.

SDR therefore appears to have bottomed out for now and is looking to continue trending higher.

SDR is a buy here and initial stops can be considered back near $3.50.

Technical limitations

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