Evertz Technologies Ltd. waiting for the release of Q4 in June

May 6th, 2015 – Comment

ET is for the patient investor who wants to collect their dividend and perhaps catch the next advance.


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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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ET LOGO

Hi Lou,

What do you think about Evertz Technologies Ltd.?

Thanks,

Pat

 

Hey Pat,

Thanks for the assignment. Evertz Technologies Ltd. (ET TSX) is a leader in software defined video networking technology. The company designs and manufactures video and audio infrastructure for the entertainment industry with clients such as ESPN. The dividend on the stock yields 4.4% and over the last thirty days has traded on average 30,133 shares per day. The research conducted on your behalf indicates that we can expect the release of Q4 results in June so be sure to track how the stock progresses towards the flex point.

An inspection of the Q3 results released on March 4, 2015 indicated that for the past 9 months ET was generating higher revenue and net earnings as their clients stepped up their purchases. Broadcasters are upgrading their facilities to move video content at higher speeds to meet market expectations.

A probe of the charts will channel my thoughts on ET.

 

ET

The three-year chart indicates that the stock has been range bound since January of 2014. Support in the lower part of the range comes in near $15.50 and resistance near $17.50. There have been two breaks out of the range the breach below support in October of 2014 and the move above resistance in February of 2015. Both incidents were short lived and ET retreated back to trading in a range.

 

 

 

 

 

 

ET2

The six-month chart depicts the support that has surfaced near $16.50 and the resistance that has formed near $17.25 as the stock retreated from $18.50 in early March. It is worth making mention of the buy signal generated by the MACD and the RSI in late January as the shares began the leg up towards $18.50. The momentum indicators also signalled a sell in early March as the ride was coming to an end.

ET is for the patient investor who wants to collect their dividend and perhaps catch the next advance. The stock is currently taking a breather and we will have to wait for the release of Q4 in June to get a better sense of direction.

Next time I will examine the case for Natural Gas on an assignment from John.

 

Make it a profitable day and happy capitalism!

 

 

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