Thus seems to be attracting press and brokers' attention recently...starting with Dresdner Kleinwort Wasserstein, acc. to telegraph they've been a bear on thus since its floatation, looks like no more though, as they've upgraded it from reduce to add with a price target of 30p...
Another positive development attracting attention was the news that US fund manager Capital Group had taken a 4.2 per cent stake...this also raised bid speculations...as investment bankers started suggesting that other private equity houses, who consider some alternative telecom operators to be massively oversold, are looking to grab up stock in Thus...
It also appears that the majority of the selling by Scottish Power shareholders has now been completed, hence lifting the stock overhang...
Well those are the news, rumours, recommendations, etc...but as it's well known most members of this board dont just go alongside news or broker recommendations, best treat them as +/-ve news and base decisions on TA...
Chartwise, a classic recovery bottoming pattern appeared and followed by some upmoves on relatively very high volumes raising hopes of further recovery...both rsi and stochastics steeply ticking up after bottoming at oversold levels while 5 day MA about to cross over 10 and 24 seems to be acting as resistance...
If 20 broken up, brokers target of 30 will not be out of reach chartwise, further rises can only be considered depending whether the price uses 20 or 30 as its new basis...I personally wouldnt consider a long position unless 20 level broken up...
Finally there have been many occassions when telcos seemed to have bottomed, but at the end of the day disappointing the investors and falling further levaing many with burnt fingers.. I'd therefore treat this bottoming pattern too with a pinch of salt and keep in mind that telcos still not out of the wood as a sector..only having said that I'd put thus on my watch list as a potential long on the basis of TA and +ve news/rumours...
Riz
Another positive development attracting attention was the news that US fund manager Capital Group had taken a 4.2 per cent stake...this also raised bid speculations...as investment bankers started suggesting that other private equity houses, who consider some alternative telecom operators to be massively oversold, are looking to grab up stock in Thus...
It also appears that the majority of the selling by Scottish Power shareholders has now been completed, hence lifting the stock overhang...
Well those are the news, rumours, recommendations, etc...but as it's well known most members of this board dont just go alongside news or broker recommendations, best treat them as +/-ve news and base decisions on TA...
Chartwise, a classic recovery bottoming pattern appeared and followed by some upmoves on relatively very high volumes raising hopes of further recovery...both rsi and stochastics steeply ticking up after bottoming at oversold levels while 5 day MA about to cross over 10 and 24 seems to be acting as resistance...
If 20 broken up, brokers target of 30 will not be out of reach chartwise, further rises can only be considered depending whether the price uses 20 or 30 as its new basis...I personally wouldnt consider a long position unless 20 level broken up...
Finally there have been many occassions when telcos seemed to have bottomed, but at the end of the day disappointing the investors and falling further levaing many with burnt fingers.. I'd therefore treat this bottoming pattern too with a pinch of salt and keep in mind that telcos still not out of the wood as a sector..only having said that I'd put thus on my watch list as a potential long on the basis of TA and +ve news/rumours...
Riz