Aquarius Group(AQG)

[Riz]

AQG was up +8 (15%) at 61.5 on Friday on the news that it was demerging its Collins & Hayes subsidiary and its bathroom division as new stand alone Aim-listed companies...

Shares in both companies will be issued to all those holding shares in AQG on 27 July. Collins & Hayes shares will be issued at 60...Airbath has not been priced yet...but it's expected to have a turnover of £17.4m and pre-tax profits of £1.6m...therefore using the same criteria it is likely to be priced at 45-50...adding the remaining of the AQG overall valuation goes well over 100...

Positive recommendations by weekend papers on the above basis...

Looks like the group is undervalued and the price may well keep going up on the entry of AIM...

AQG started a sharp rise end of May from the flat base it formed just under 30 and hovered around for 2 months all the way up to just under 60 breaking all resistance levels on the way on unusually high volumes...from there it retraced a bit only to go up again to break the last resistance point...

Both RSI and stochastics are sharply up..MFI ticking up while OBV going flat on a high level...

I'll be watching this one as of next Monday as it seem to be both a chart-breaker as well as fundi-breaker at the moment...any views?

Riz
(No financial advice intended)

 

[darth trader]

Riz,

good spot - this is an interesting chart. I'm a little cautious on this as the movement on Friday was very strong but analysis of the trades suggests that mainly sales were taking place. Could be a sign of exhaustion?

Wrt demerging etc. there is also an element of arbitrage that will affect the valuation.

The BB's have opened up so I feel that this is going to move a lot but I just don't know which way!

Good luck and thanks for bringing it to my attention.

 

[Riz]

Already up about 25% at 75.5...still some distance to 100..may retrace before further upward movements however...well this one proved well worth watching...

Riz