Somehow we have always managed to keep Maple Leaf Foods out of this blog. No idea why as it is a true Canadian Company in a very real business. So here is it’s belated debut.
As always click on the chart to make it bigger.
Today the stock shot up a little because the company beat analyst expectations, which means essentially nothing other than that the stock will enjoy the spotlight a few minutes longer. We would sell this stock. The reasons are very simple. The stock has more or less quadrupled in value over the past eight years and probable did so in what could be a clean 5-wave sequence. In the process it has broken the channel (if there is one) and is now at or on another line connecting tops over some twenty years. The last leg is also a nice 5-wave sequence and every other indicator is looking not so hot. RSI, MACD and even volume is deteriorating fast. Time to sell.