BLAND : Until the day it breaks above 0.80 on huge vols it will remain a difficult trade
August 2, 2011 Leave a comment
BLAND has a lot of history, most of it not so good, and that goes for the chart as well. In our view the stock will only be worth a punt from support until it eventually rallies above 0.80-0.81 on a massive increase in volume. This stock needs several weeks of sustained volume of well over 500m shares a day (and preferably some days with 1.5bn shares traded) to really get out of its long term trend. For the record, a break above 0.80, will be the sign of a rally to 1.00 And from 1.00 to .40-1.50 it will not take nearly as long as it is to break 0.80
On a longer term basis 2.40-2.50 looks possible.
For the VST, entry at 0.72 for 3-4 spreads, or a tad higher if the all important volume pump is turned on, in which case 0.77-0.80 may be revisited sooner rather than later.
We know someone who is still holding th stock from well above 10. He doesn’t have very nice things to say about the company.