RCD - Record Investments

[Julia]

This company has been doing very well recently.

I have a holding and am considering increasing it. However, am concerned that their rise cannot continue at the same rate if at all, despite still healthy fundamentals.

I'd be very grateful for any TA members who could take a look at a chart for this stock and offer some comments about how it looks as a buy from a technical point of view.

With thanks in advance.

Julia

 

[GreatPig]

Re: Record Investment Ltd (RCD)

Julia,

I bought some back in August for $5.92 then topped up in October at $6.50 - both points right near my trend line.

It's really taken off since late October, and I personally would consider it a little high to be buying into right at this moment. History suggests that it is likely to return to the trend line at some stage, and it will be quite a few months before the trend line reaches $8.44.

I would guess that it can't be all that far from turning back towards the trend line again now, although there's no sign of that yet.

As always, this is just general comment, not advice.

Cheers,
GP

 

[Julia]

Re: Record Investment Ltd (RCD)

GP

Thank you. Much appreciated, and yes, I realise it is not advice.

Cheers

Julia

 

[GreatPig]

Broke out of the doldrums today on good volume.

Cheers,
GP

 

[Julia]

I'm up around 130% on RCD and anticipate plenty of upside still to come.

Julia

 

[michael_selway]

I'm up around 130% on RCD and anticipate plenty of upside still to come.

Julia

Earnings and Dividends Forecast (cents per share)
2005 2006 2007 2008
EPS 32.0 49.3 59.2 70.6
DPS 30.6 42.0 44.8 49.0

Was before

RCD - Earnings and Dividends Forecast (cents per share)
2005 2006 2007 2008
EPS 32.0 49.3 56.7 64.7
DPS 30.6 42.0 49.0 55.0

thx

MS

 

[Magdoran]

Hello GP,


Nice call on the breakout. I watched this with interest looking for a pull back to go long and suddenly found the symbol changed to AFG, which makes charting a nightmare...

In the old chart I suspected it would “layer” above the $11.00 range with a low, and was looking for an entry there... I must find a way of patching such charts together....

Julia, well done on your trade too, nice move!


Regards


Magdoran

 

[GreatPig]

Magdoran,

and suddenly found the symbol changed to AFG

Yeah, just noticed that today myself (although I've been away since last Thursday and only got back to updating my charts tonight).

which makes charting a nightmare

I have to manually merge the stock codes in AmiBroker (I use unadjusted data), and that loses all my trend lines, etc, which is a bit of a pain.

The stock hasn't done much since the breakout yet, but at least it's hanging in there at present.

Cheers,
GP

 

[bug]

Hi, AFG has had a solid pullback, presenting a buying opportunity? Any ideas on whether this was just on account of the 'only 20%' growth guidance, or has there been another cause?

Any thoughts on AFG's future prospects - will they become another MBL/BNB
post merger, with a similar investment banking growth/expansion path? Or will they remain specialised?

Ta

 

[BlueTrader]

What a fantastic growth story - great opportunity to get on board AFG under $10.00.

The market was unhappy with 'only 20% growth guidance in 2007', and has opened up a great chance for people who thought the $12.60 levels had locked them out. AFG was more than 3% up today.

The growth opportunities blitz MBL and possibly BNB too. Worth doing your own research to see for yourself!

 

[michael_selway]

What a fantastic growth story - great opportunity to get on board AFG under $10.00.

The market was unhappy with 'only 20% growth guidance in 2007', and has opened up a great chance for people who thought the $12.60 levels had locked them out. AFG was more than 3% up today.

The growth opportunities blitz MBL and possibly BNB too. Worth doing your own research to see for yourself!

Its not bad, has good growth forecasts

Earnings and Dividends Forecast (cents per share)
2006 2007 2008 2009
EPS 49.4 62.5 76.6 88.9
DPS 41.0 41.0 44.0 47.0

EPS(c) PE Growth
Year Ending 30-06-07 62.5 15.9 26.5%
Year Ending 30-06-08 76.6 13.0 22.6%

thx

MS

 

[Julia]

Reports I have read in the past few days indicate that the recent pullback on AFG has been due to some questionable accounting practices. AFG's defence has been that whatever they did (I'm no accountant) did not actually affect the bottom line so they saw no need to draw attention to whatever it was.

Sorry to be so vague, but I read the details on the company's website and pretty much dismissed it as not being of sustainable concern, and this has been born out with the SP rise in the last couple of days.

Julia

 

[bug]

AFG has kept going up strongly - the last three days have been massive: 10%+ price appreciation.

I really have to scratch my head about the media - AFG's socalled 'dodgy' accounting practices boiled down to a missing bracket when it gave the ASX a draft copy of its financial report. No profit impact or cash flow impact as you'd expect - it had nothing to do with their accounting practices and was really an editing issue. The media has been particularly mischievous in misrepresenting the facts.

This kind of stinging article has similarities to articles which MBL mainly attracts - it seems like cutting down tall poppies. The media doesn't cover AFG that much, so it would be more interesting to read a positive factual article about the company.

It will be interesting to follow AFG's strong growth path as it progresses. Its share price has consistently grown from $2+ five years ago.