Cancom SE : The EUR 9.75 support area is tested
October 12, 2012 at 03:29 am
By
Entry price | Target | Stop-loss | Potential |
---|
€11.28 |
€0 |
€9.53 |
-100% |
---|
CANCOM IT Systeme AG shows relatively strong fundamentals and is coming back to attractive price.
From a fundamental viewpoint, the company is undervalued in terms of enterprise value. Based on the current price, its market capitalization, minus its net debt, represents 0.16 times its revenues. This valuation is just 10.54 and 7.35 times the two next years earnings.
Graphically, the stock is coming back close to a trendline. Moving averages are downward and technical indicators illustrate the oversold situation. The EUR 10.3/10.5 area could cause a positive reaction for the coming trading sessions and allow a technical rebound towards the EUR 11.85 mid-term resistance and then the long-term target price is EUR 12.85.
The trading strategy can benefit from the proximity of the trendline to buy CANCOM IT Systeme in a good timing. Investors might placed a stop loss order at EUR 9.5 in order to avoid important losses.
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