SATS: Watch the Crucial Support

SATS  is holding well during the January 2014 worldwide sell off. The key question is: How Long can SATS continue to hold and avoid being sold off?

Base on the chart, SATS is currently trading in a Rectangle and also the Descending Triangle with a crucial resistance turned support zone between $3.07 and $3.10. This support zone coincides with the 61.8% Fibonacci Retracement Level. Upside is very limited as there are many resistances (20D, 50D, 200D SMA), Rectangles resistance and the Descending Triangle resistance from $3.16 to $3.24.

2014Feb5-SATS-800x600

Original post by Marubozu from My Stocks Investing Journey.

Fundamental Data for SATS

Current P/E Ratio (ttm) 18.7500
Estimated P/E(03/2014) 16.7553
Relative P/E vs. FSSTI 1.4917
Earnings Per Share (SGD) (ttm) 0.1680
Est. EPS (SGD) (03/2014) 0.1880
Est. PEG Ratio 1.7656
Market Cap (M SGD) 3,532.90
Shares Outstanding (M) 1,121.56
30 Day Average Volume 916,733
Price/Book (mrq) 2.5450
Price/Sale (ttm) 1.9475
Dividend Indicated Gross Yield 3.49%
Cash Dividend (SGD) 0.0500
Dividend Ex-Date 11/19/2013
5 Year Dividend Growth 1.39%
Next Earnings Announcement 02/11/2014

..

VALUATION RATIOS

Company Industry Sector
P/E Ratio (TTM) 17.31 19.48 1,065.88
P/E High – Last 5 Yrs. 16.87 104.42 43.28
P/E Low – Last 5 Yrs. 8.90 30.42 10.59

 

Summary

Fundamentally SATS is not cheap base on PE Ratio as current PE (TTM) is at the high end of PE High for the last 5 years. Dividend yield at 3.49% is not very attractive as there are other blue chip stocks or REIT with more attractive dividend yield.

Technically SATS upside is capped by the down trend line and there is a danger of breaking the crucial support. It is expected more selling to come if the support is broken. Good candidate to short with price target of $2.90 (Rectangle) and $2.70 (Descending Triangle).

F&N: Up Trend Still Intact But Need to be Cautious!

Base on current daily and weekly chart, F&N is still on uptrend. F&N is still trading above 50D and 200D SMA. However, need to watch out for a few potential reversal signals:

  • The stock seems like trading at Elliott Wave 5 now on Daily chart. If F&N completes Wave 5, a bearish corrective wave A-B-C will start.
  • $6.80 is the previous resistance level and 50D SMA. Need to see whether F&N is able to hold above this $6.80 resistance turned support level.
  • Shooting Star and Evening Star were formed at the historical high F&N stock price, these two are reversal candlestick patterns.
  • 2/5 EMA is going to show bearish crossover on both daily and weekly chart.
  • 2/5 EMA is going to cross down 20 SMA on daily chart.
  • If all the above bearish signals appear with increase in trading volume, who say there is no “Sell in May and Go Away” this year?

If the $6.80 support is strong and F&N continues the uptrend, I will still NOT enter any long position.

Reason? My rule: NEVER BUY AT HIGH!

So, I am FULL BEAR on F&N stock and preparing to short!