Month: March 2013

BCE, Bell Canada Enterprises update

Hamilton

We begin with the then, June 2012, and now charts;

BCE june 2012bce mar 7 2013

As you can see some eight months ago, the stock had already been as high as $42.50, we thought it could go a little higher (about $50) but that there was not that much left in it. Other than time passing by nothing has changed. The stock could still go to $50, which would represent another 10% or so from the present $46, roughly. We would advise a tight stop however, as we are near a point where things can get a little nasty, if for no other reason than that they have been so nice. Here is why on a chart;

bce mar 7 2013 msn

This is using the MSN chart, monthly and arithmetic , instead of the Yahoo semi-log chart. Not only is the difference rather startling, proving once again that you can prove most anything with a chart, but the implication to be inferred , at least from an EW perspective, is that we are in a 5th wave that is now about 62% of the extended 3d wave influenced by Nortel. Not only that but the straight line, no interruptions performance over the past 3/4 years is indicative of pure thoughtless momentum buying, something that can go on for ever provided the value of money is debased, or it can stop for no particular reason. From a risk/reward perspective the time seems right to either use the tight stop loss or get out.

bce mar 7 2013 s

For an incorrect count see previous blogs. We will not give it another try but nevertheless we doubt that this stock will rise above $48.50! To stick around for so little is not sensible.

BBY, Best Buy update and JCP

Hamilton

The usual then-and-now format, then being 31 Dec. , two months ago;

bby dec 31 2012 sbby mar 6 2013

From about $11.75 to $ 18.75 is a cool $6 up in 2 months which is equal to $36 per annum or 306%, it may go higher if the analysis then was correct.

On the side , we noticed that JCP, J.C. Penney was downgraded by Citi and a number of other analysts. This is when the stock is rapidly approaching our target of $13.75 or so. Be ready!

CUA, Cuoro update

Hamilton

cua dec 20 2012cua march 6 2013

Then and now charts. The wave 4 prediction that it would not be a simple triangle but an a-triangle b- c pattern proved to be correct. We are now also approaching the target established more than a year ago. We would not buy it there. From $2.60 to 16 cents is very impressive. Listening to Ned Goodman the other day at the Prospectors etc (PDAC) show downtown, he reminded that in his opinion about 1/2 of these companies (there are 700 plus) will cease to exist soon. He is a geologist and very well respected on Bay street.

JCP , J C Penney

Hamilton

jcp mar 5 2013jcp mar 5 2013 s

JCP looks like it should be bought soon at about $13.75. Almost 27% is held in short positions and this should provide a similar move to HPQ recently, that doubled in a few months and is the best performing stock in the Do this year. As always, use a stop at around $12.