Mar 30th, 2012 – Comment

If you want to preserve your gains you might want to take a profit and perhaps buy back the shares on the pullback.


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Hello Lou,

I bought 500 QBR.B last June at $31.41. Recently it has had a brisk rise, and another analyst suggested a target of $39.50. Would a Mickey Mouse investor like me be wise to take the current money and run?

Cyril

 

Hi Cyril,

Thanks for the assignment. In reading into your email, if I have gotten your meaning, you see yourself as a major star in the magic kingdom. Excellent! It sure beats being Goofy! Congratulations on your profits. They may not pay for everything but certainly the extra net income will pay for something.

Quebecor, Inc.(QBR.B TSX) is one of Canada’s largest media companies with interests in cable, wireless, broadcasting, internet, and print properties. The company is also nosing around the National Hockey League for a team to relocate to Quebec City.  Their strength in Quebec and the language barrier that  prevents some of the encroachment of United States programming into their market has provided QBR.B with unique opportunities. A unique culture and savvy management has seen the organization create a French Canadian celebrity system that drives greater value into their distribution channel.

A review of the charts will help answer your question.

 

 

 

 

The three-year chart indicates that the advance that started last summer may have gotten a bit ahead of itself. The RSI is in overbought territory and when you look at the ten-year chart there is resistance that comes in at $40.00.

 

 

 

 

 

The six-month chart provides a close-up of the spike high that started on March 16, 2012 when the BCE takeover of Astral was announced. That deal had all the sharks circling the remaining swimmers in the water. I can’t say if QBR.B is a target but from the indicators on the chart it looks like the shares are going to pull back. The RSI is moving out of the overbought zone and the MACD is turning lower. If you want to preserve your gains you might want to take a profit and perhaps buy back the shares on the pullback. At this point the indicators are not suggesting a reversal of the uptrend that started in November of 2011.

The fact that you asked about a sale tells me you want out. Going to cash to capture your gains is a good habit to get into. A potential gain is soon forgotten, a realized loss never is.

 

Make it a profitable day and happy capitalism!

Categories: Telecommunications
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