Dollar General Corporation : In oversold situation
December 19, 2012 at 09:36 am
By
Entry price | Target | Stop-loss | Potential |
---|
US$44.2 |
US$0 |
US$41.7 |
-100% |
---|
The USD 42.9 support, currently tested, should allow Dollar General to rally again.
From a fundamental viewpoint, Dollar General is undervalued in terms of enterprise value. Based on the current price, its market capitalization, minus its net debt, represents 1.05 times its revenues.
Dollar General is oversold and near to USD 42.9. This situation gives credit to a potential technical rebound. Thus, the stock could find new energy and would rise towards the next USD 46.6 resistance and then to a slant at USD 49.
In order to benefit from this scenario, investors could buy the stock at current price with a target at USD 49. A stop loss will be fixed under USD 42.
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