Year: 2014

ACQ, AutoCanada Inc

Hamilton

ACQ mar 24, 2014

This company runs a collection of auto dealerships, representing all the major brands including, ironically, GM. For two years or so the stock did nothing and then it took off to become a ten-bagger in just a little over two years. They are based in Alberta and , no doubt one day this stock will trade at $500 or more, but we would be inclined to take our chips off the table. The stock trades at  a 33x p/e, the RSI and MACD are at peak levels and lately the climb was as close to vertical as it gets. A sell.

WLT update

Hamilton

wlt may 20 2014

As anticipated this stock has now done it’s minor 5th wave. The only thing not clear is the degree. This may be it , then again it may not. Nevertheless this is definitely a buy at these levels as, either way, the stock should have a tradable rebound of about $3 before anything else. 42% of the float of this stock is presently held in short positions. A speculative buy for sure!

EWI , iShares Italy

Hamilton

ewi mar 18 2014

A new high today in Italy’s stock market. The chart is not  particularly bullish. A large A-B-C could still take this ETF to about $22, but a more bearish take would call for a 5th wave down in a diagonal as shown. We would say arrivederci, un till some later date, and step aside for now.

MGA, Mega Uranium Ltd.

Hamilton

mga mar 11 2014

First the big picture. This stock peaked at about $8 back in 2007 after completing a clean 5-wave up sequence. After that it appears to have traced out a six/seven year A-B-C correction which was completed at about $0.55. During this time we had the Russians dismantling  a good part of their arsenal and the Japanese abandoning nuclear power all together. The Germans did something similar. The unanswered question was , of course, where are you then going to get the power. It seems to be more and more probable that the answer is nuclear power. So we have, or will have gone full circle and with the Chinese contemplating a few hundred reactors the whole demand/supply picture has changed dramatically. So much so that, if the $8 peak ever did make sense, it should do so again now.

In EW. terms a return to wave 4 of previous degree is sort of a minimum for a rebound, that is close to $2. Beyond that there are a multitude of possibilities over time. Below are short term charts to show the initial expectation.

mga mar 11 m 2014mga 11 mar 2014 s

The stock looks a little overbought so it may take a little while for the next leg up. We expect a triangle here so the lowest point was already reached.