People Corporation a case of buy high sell higher

Jun 23rd, 2014 – 1 Comment

PEO exhibits an intact uptrend line, a riser and step advance, and support along the 50-day moving average.


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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.


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PEO LOGO

Lou,

Your article on People Corp is the only one in existence. It’s so hard…as an investor…to gauge the investor community when there’s no useful information available. Reminds me of the early days with Paladin Labs…I’m flying solo with no good information…no discussions to ponder.

At least your article gave me some confidence that others were watching People Corp as well. On that note, might be time to follow-up with some additional facts about this company…if you would be so kind.

I don’t think it’s as risky as it was at one point. Then again, I don’t know if it was ever really risky.

Looking at the CEO, his background at Assante is ideal for what he’s attempting at People. He’s buying, he’s consolidating and then he’s marketing it under one umbrella…it seems like a replay of Assante Wealth Management but he’s wearing many more hats this time.

Is the People space (pension, benefits, HR consulting) a good place to be investing? Lots of little players without a real national presence for what Goldberg (CEO) is attempting? Seems like he’s going after the best companies being led by owners that are trying to figure out how to sell and head into retirement. Goldberg may be offering semi-retirement with a consulting or a mentoring role instead of full-out retirement.

Anyways…feels like the early days of the mutual fund era. Not exactly, but you know what I’m getting at. Management looks strong, great past success in consolidating acquisitions, and a strategy that seems to be working. I’m in at $1.70 per share, sitting pretty and going after the future dividend.

Love to get a “Part 2″ on People…and what you’re seeing now. I’m thinking People has grown up a bit since you wrote your article.

 

Hey Joe,

Thanks for the assignment and your thoughts regarding People Corporation (PEO TSXV). This will be the second time that I probe the charts for the stock. The first was on August 26, 2013 when the shares were trading for $1.23. The shares had moved up from a low of $0.39 in December of 2012 and caught another leg up in April of 2013 on the announcement of an acquisition. In the last analysis it was mentioned that the shares were building a base near $1.15.  It was advised to be cautious with these shares based on  a number of risk factors including very small market capitalization, a higher risk trading environment, sparse coverage by the street, and thin liquidity. The shares continued to build a base near $1.25 into January of 2014 where they began another advance.

You mentioned the loneliness of the individual investor. I can relate to your plight. However if you check out the bull boards for PEO you’ll find that there is a community that follows the stock which might help you get some feedback on your thoughts.

Another inspection of the charts will form the basis of the evaluation of this stock.

 

PEO

The three- year chart reveals the riser- step pattern that has evolved over the course of the move higher. What I like about this is that the stock builds support as it climbs. If a retreat were to ensue there would be multiple ledges of support that could prevent a free fall. Make note of the support that has been provided by the 50-day moving average since January of 2013. In addition the uptrend line has remained intact as the stock has moved higher and there has been a series of higher highs and higher lows which would be interpreted as positive.

 

 

 

 

 

 

 

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The six-month chart indicates that the shares are pulling back from resistance near $3.00 as the MACD and the RSI turned lower. PEO has been improving its case as an investment with an increase in its market capitalization, and improved average volume. What I would like to see is a move to the senior board and some analyst coverage to further enhance the opportunity. The company will report Q3 results in July which you need to put on your calendar.

PEO exhibits an intact uptrend line, a riser and step advance, and support along the 50-day moving average. These patterns would indicate that you shouldn’t shoot this running horse.

 

Make it a profitable day and happy capitalism!

 

 

 

 

 

 

 

 

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