Range bound trade with a dividend

Mar 12th, 2010 – Comment

Given the support at $12.00 and the 6.1% dividend yield it looks like a trade between $12.00 and $14.00 with an dividend kicker.


About the Author

Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality – and a true believer in the happiness-inspiring powers of capitalism.


Read the author's full profile.


Further Research

Read more about Technology.


marsulex

 

Hello Lou,

Would like your comments  on MLX-T as is seems to be building a base around $11/12.00 over the past few months. Although market cap is small, looks like a niche player with good consistent growth over many years. It pays a healthy dividend of 5.7%. Look forward to your input.

Much appreciated,

The Bird Dog,

Jim

Hi Jim,

Always good to hear from you. Full disclosure, I first met Jim at a financial show 9 years ago when he was just getting into investing as an area of fun and profit in retirement. Over those years he has  scared up some interesting opportunities like a good bird dog flushing fowl from the bush.

Marsulex Inc., ( MLX TSX) provides services to oil refiners such as, recovering sulphur from the process stream, regenerating sulphuric acid, and cutting and removing petcoke from cokers.  The stock is up over 54% from the 52 week low and to your question what’s left in the tank?

mlx

MLX had a great run from the March 2009 lows and the three year chart indicates that there is support at $12.00. The RSI indicated that the stock was getting ahead of itself in January 2010 when it approached $13.00 and then pulled back. You can also see that there is further resistance at $14.00 and that the uptrend is still intact with good support along the 50 day moving average.

The one rub is that MLX is a thin trading stock. Average volume over the last 3 months is 8,029 shares a day.

 

mlx2

The six month chart provides a closer look at the recent trading in MLX. The MACD did signal a downturn from the January highs and looks to be curling up at this time. 

Given the support at $12.00 and the 6.1% dividend yield it looks like a trade between $12.00 and $14.00 with an dividend kicker. Just keep in mind the thin average daily volume.

 

Happy Capitalism!

Categories: Technology
Content © Relentless Economics - Charts courtesy Stockcharts.com - Employees Entrance - Optimization Media