Metals USA Holdings Corp : Bet on a technical rebound
By Oscar Salza
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
US$13.61 | US$0 | US$12.8 | -100% |
From a fundamental viewpoint, the company shows positive information with an estimated PER of 8.02x for the current year. Furthermore, the EV/Sales ratio is 0.46x and it confirms the low valuation. Revenues and operating margin growth rates add relevance to this investment.
From a technical viewpoint, the latest downtrend pushed the security upon contact on mid-term support of USD 13.48. In weekly data 50 period moving average could play as stepping stone. Investors can take a long position on the USD 13.48. In the first instance, the target price will be the 20-day moving average at USD 15 (moving averages area). In case of breakdown of the USD 13.5 support at the closing price, investors should close their positions.