As I was too early on Manulife, will try again on Sun Life. Just under $15 this is a buy, comes from $55. Channel and RSI and MACD all indicate that at perhaps $14.75 this one should get a good lift.
Year: 2009
FFH update, see also CI, March 9
So at about $400 we recommended getting out of this stock, all based on a classic formation known variously as a rising wedge, rising flag,a diagonal triangle and a pennant. It invariable drops back to its base and often more than that. After about $125 in our favour we would be inclined to say “thank you†and move on. Remember that we want a high probability, not a gamble and the trade can always be reentered if conditions warrant doing so. Right now the light is amber.
FRX Forest Labs March 9
Pharmaceuticals are looking a little brighter as M&A activity seems to be focused on this nick of the woods. We had WYE and now SGP and perhaps more to come. Obama is lifting the ban on stem cell research and so on, all good stuff but the reality is that all the pharma companies are in trouble due to patent expiries, lack of pipeline products etc. etc. The beneficiaries are, of course, the generic producers. The product has already been “soldâ€, it’s efficacity is not in doubt, and governments love the lower prices. Forest Labs is one of the generics.
Here is the chart since 1982. The drop from the high near $80 is an a-b-c, potentially a completed correction. Furthermore with a low at $18 it certainly has done the obligatory 62% and then some. The P/E is around 6 to 7. As these are big moves it pays to look at this a-b-c on a log-scale chart.
Note that c is already larger than a so this stock could turn at any moment! Looking at the chart in detail;
Judging by the RSI and OBV one more low below the $18.50 level is entirely possible but not necessary. To see what can happen look at CI Cigna some 6 years ago. This is best traded as an option IMO.
T (ATT) March 9
The big picture is still negative but there is a good trading opportunity. First the big picture.
Very much like all the others (GE etc.) so could go a lot lower but for the moment.
It could go up to about $30, so from say $20+ there is a handsome return opportunity of about 50%. On the big chart $20 does look meaningful.