D-Box Technologies looks like a better play than Noveko International

May 13th, 2011 – Comment

Bonjour ! Pourriez-vous commenter sur ses 2 titres (bourse de toronto): Noveko international : EKO Technologie D-box : DBO Merci beaucoup Manon Bonjour Manon, Merci pour l’allocation! If I had to chose between Noveko International Inc. ( EKO TSX) and D-Box Technologies (DBO TSX) I would have to take DBO. EKO had a huge spike […]


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Bonjour !

Pourriez-vous commenter sur ses 2 titres (bourse de toronto):

Noveko international : EKO
Technologie D-box : DBO

Merci beaucoup
Manon

Bonjour Manon,

Merci pour l’allocation! If I had to chose between Noveko International Inc. ( EKO TSX) and D-Box Technologies (DBO TSX) I would have to take DBO. EKO had a huge spike in late March to early April of 2011 but it has not been able to hold on to its gains. DBO on the other hand has held onto its uptrend line. Lets consult the charts for a clear picture of what has been in the mix.

The three year chart for EKO depicts the long downtrend that the shares have been struggling with since November of 2009 when it hit resistance at $3.00. The spike up from the $0.30 lows in March of 2011  to the $1.00 range by early April was encouraging but not sustained.

The six month chart provides a number of patterns that call for profit taking when they are recognized. The RSI and MACD both signalled a shift in momentum from frenzied buying to steady profit taking as the stock retreated to $0.52. In addition a double top formed in April suggesting that the advance was over.

Currently neither the RSI nor the MACD are indicating a pending uptrend.

The three year chart for DBO illustrates a stock that has support along its uptrend line and has tested but not breached its 200 day moving average. There is resistance at $0.75 which it hasn’t been able to breakthrough but there does appear to be an ascending triangle forming. An ascending triangle suggests, but doesn’t guarantee, that a break above $0.75 is developing.

The six month chart for DBO  underlines the value of the MACD as a signal generator. In mid March of 2011 it indicated a buy at $0.50 and by mid April that it was time to sell at $0.70. Currently the MACD looks to be setting up for another buy signal.

Both of these stocks are microcap plays which by their very nature suggests a higher risk profile so please conduct your due diligence to make sure it meets your investor profile.

HAPPY CAPITALISM!

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