Month: September 2014

PHG, Koninklijke Philips NV ADRs, is Philips seeing the light?

Hamilton

phg sept 23 2014

Philips has always been primarily a light company, that is glowbulbs as the original name “Gloeilampen fabriek” indicated. Over time the company diversified into multiple different areas and now, apparently, it has decided to consolidate into two separate groups, Light and Health. Big is bad and small is good. Will it work? Perhaps but if the EW pattern is an indicator it will not, at least not initially.

After the 2008 drop the stock has almost retraced all the losses but it has done so in a very clear a-b-c pattern which, by it’s very nature, is corrective. The outlook therefore is for another wave down comparable to the 2008 one. Not a buy, unfortunately.

RY, Royal Bank update

Hamilton

ry sept 17 2014

$82.50 was as high as we expected this stock to go; this on account of the fact that a 5th wave cannot be longer than a 3d wave when that 3d wave itself is already shorter than wave 1. Briefly it got fractionally higher than that but only by the smallest of margins. Today it was not able to repeat that feat, so far at least. The RSI peaked a few months ago and the OBV, On Balance Volume has no more room left to go higher. This is a sell! Today Yellen will confidently pronounce the World to be flat ( the world of yield-curves, that is) and with that she will undo 500 hundred years of progress since Copernicus formulated a model of the Universe that did not have the Federal Reserve at it’s center. Ironically this same Copernicus fellow was one of the first to formulate a quantity theory of money (back in 1517!) which, with a little massaging and torture, became the basis of the Gresham’s adage that “Bad money drives out good money” as in the US$ and gold. This time the world may not buy the narrative any longer. At least we now know what a “considerable period of time” is.

ATD.A , Alimentation Couche Tard

Hamilton

atd

This night owl of convenience stores and gas station reported the other day and the results were good but nevertheless a little short on the top line. It has had an absolutely stellar stock performance over the last 5 to 6 years. Now that the stock is moving up in a vertical fashion, together with an RSI and MACD through the roof  we would put this beast to bed and look for financial nourishment elsewhere. The count? No idea.

DOW, Dow Chemical update

Hamilton

dow sept 2 2014

My guess is that the double top level is at about $56.50, which is only two dollars higher than we are presently. It may yet go there, or even higher, but we would exit the stock now with a ten bagger while it is still there.