Lou,
Could you please conduct an analysis on Intertape Polymer Group?
Thanks,
Wayne
Hey Wayne,
Intertape Polymer Group caught a bounce off a rock bottom in November 2010 at about a buck a share and has taken the escalator to the penthouse of profit for the last eighteen months. Fabrice Taylor, who is a contributor to Globeinvestor.com, picked this one as a runner in an article published in July of 2011 when the shares were trading at about $1.50. Sweet!
The company is in the packaging business and makes tape and other film products. ITP went through some hard times having learned that growth in revenue without healthy profit margins is an exercise in trading dollars. Money comes in, then it goes out. Very much like being on a carousel, you are in motion but not making any progress.
A review of the charts will inform us as to the opportunities and risks associated with the shares of ITP.
The three-year chart is an awe inspiring vision of wealth creation for investors who got on the ride at the right time. The pattens worth noting include the solid support along the 50-day moving average throughout the advance. The stock has consistently tested support without breaching it.
There is a golden cross that formed in May of 2011, indicating that there was more gas in the tank. Also, the RSI indicates that the shares have been overbought for most of 2012, which is a sign that investors are very motivated to buy this stock.
The six-month chart provides a text book illustration of a solid advance. The trend is your friend, until it ends!
ITP looks like a case of buy high and sell higher. From the long-term charts there is a slight amount of resistance that comes in around $6.00 but from there it runs to $7.30 without much in its way.
Watch this horse but let it run.
Make it a profitable day and happy capitalism!
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Lou Schizas