Australian (ASX) Stock Market Forum

AGI - Ainsworth Game Technology

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Are any of the TA guys following AGI at the moment? If so, what are your thoughts? Are we seeing a technical rebound?
 
Rainman said:
Are any of the TA guys following AGI at the moment? If so, what are your thoughts? Are we seeing a technical rebound?
Click to expand...

Possibly ...the daily ,weekly and monthly swings are up presently, although the price is still following a down trend ...I would be waiting for further confirmation that the downtrend has completed , again all depends how much risk you are willing to take at this stage in my opinion. I have attached the chart as well that may help.

AGI weekly trading chart.jpg
 
This was peddled out today.

DJ CLSA Mulls Ainsworth's
Slot machine maker Ainsworth Game Technology (AGI.AU) has
headroom for an acquisition of up to A$450 million, says CLSA, which initiates coverage
of the stock at buy with a A$3.23/share price target. A deal funded by cash and debt is
among options for Ainsworth's board, who might otherwise look at a share buyback or
increase in dividends. The broker says Ainsworth has around A$70 million cash that could
be deployed, equivalent to 23 cents per share. Increasing the dividend payout ratio from
55% to as much as 80% would deliver a 7% yield in FY16 and FY17. Alternatively, spending
A$60 million on buying back stock would boost EPS by 4% in FY16 and 6% in FY17, the
broker says. CLSA likes Ainsworth's growth potential in the U.S., which could offset
flat earnings in Australia over the next three years. "Continued expansion into
North America--the world's largest slot market--should be enough to drive overall
net profit growth of at least 5% post-FY15," says analyst David Fabris. AGI last
Click to expand...

AGI has been caned on some fairly serious downturns in it's Ausi prospects.
So maybe those who still believe the US story, with it's glut of Casino's, will have plenty more room for slot machines, in those ventures going bankrupt and no where. If the demand is still reasonable AGI, could do OK.
I am still short it, but would have closed it today had I been watching a little more closely. Maybe that will turn out to have been lucky!
 
Triathlete said:
Possibly ...the daily ,weekly and monthly swings are up presently, although the price is still following a down trend ...I would be waiting for further confirmation that the downtrend has completed , again all depends how much risk you are willing to take at this stage in my opinion. I have attached the chart as well that may help.
Click to expand...

Thanks Triathlete.
 
Doing it's own thing since mid December smashed into resistance however at $3.
After such a positive week last week bearish stock will often have bad Monday morning.
A bullish stock will keep going.
So it kind of did that and the selling, though dramatic looking on the chart at $3 has not got that much volume to it so far!
Looking for a break up!
 
Rainman said:
Are you still short AGI, Notting?
Click to expand...

No long. Got out of the short after its big day, fortunately it came back so added to the gains which was just luck cause I would have got out on that day had I been paying attention.
Good news from crown should help the sector. But if this doesn't break up and looks to continue down I will let it go pretty quick.
Cant see much today cause only have phone
 
Rainman said:
Personally, I wouldn't buy this stock for anything that CWN may or may not do in the foreseeable future. What will move AGI is what happens in the US and Asia.
Click to expand...

That's not the reason it was bought. It basically looks like is going to go up now!
It is promising money maker in general.
I hope I don't get any dividends though. I will have to donate them to some charity because I wouldn't want to profit out of what it does.
Price movements, in my mind have nothing to do with, the company.
 
notting said:
That's not the reason it was bought. It basically looks like is going to go up now!
It is promising money maker in general.
I hope I don't get any dividends though. I will have to donate them to some charity because I wouldn't want to profit out of what it does.
Price movements, in my mind have nothing to do with, the company.
Click to expand...

I tend to agree with Notting, supply and demand drive the markets these days from what I have observed.

In saying that, I wouldn't be a buyer in this stock just yet. If you're already holding, a little bit of a different scenario. It needs to trade sideways to figure out if it is heading higher or lower... at the moment it is unclear to me based on the weekly chart.
 
notting said:
... Price movements, in my mind have nothing to do with, the company.
Click to expand...

That may be true in the short run but only a fool would believe that that is true in the long run. Technicals have their place for timing an entry into a stock but they tell you nothing of where that stock is going to be in 6 months, a year or 2 years from now.

As they say, there are old traders and there are bold traders. But there are no old bold traders.
 
Two and a half year resurrection.

A potential breakout for AGI on the daily chart with the formation of a bullish pennant on diminishing volume.

AGI.jpg
 
Last edited:
Just some more thoughts on the above chart as I felt I was a bit vague. Last Wednesday saw the first breakout on extreme volume with a close above prior resistance at 2.49 (very little supply). Thursday then saw another up bar on high volume closing about 1/3 off the days high then the pennant begins to emerge. Ideally, I'd be looking for a break and close >2.72.
 
Bullish pennant pattern broken today. I had a buy limit trigger at 2.73, but it wasn't to be. On to the next!

AGI.jpg
 

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