Corby Spirit and Wine Ltd. building a base at $19.00

Oct 14th, 2015 – 1 Comment

It’s a sin stock that pays a dividend


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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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CSW.A LOGO

Your opinion on Corby.

Thanks,

Joe.

 

 

 

 

 

Hey Joe,

 

Thanks for the assignment. This will be the second time that I study the case for Corby Spirit and Wine Ltd. (CSW.A TSX). The previous analysis was conducted on June 19, 2013 when the stock offered a 3.46% dividend yield and was trading for $19.85. The evidence indicated that the stock was a thin trader but that it had a very strong position in the market. The shares were building a base at $19.75 and it was advised to accumulate the shares.

Retrospectively that was the right call. The stock reached a 52-week high of $24.69 in late March of 2015 and paid a steady stream of dividends over that time period. Unfortunately that was the top and since then the shares have been pulling back.

An audit of the charts will provide a new snapshot of the situation with regards to this investment.

 

CSW.AThe three-year chart points to the downtrend that has been in place since March of 2015 and the death cross that surfaced in late June. What is also evident is that there appears to be some base building near $19.00. Some of the selling pressure on CSW.A since it topped out can be attributed to some of the costs associated with building its sales pipeline into the United States. The build has taken profits and sales lower but is viewed as a situation that will right itself.

 

 

 

CSW.A 2

The six-month chart pulls into focus the base building at $19.00 and the buy signals generated by the MACD and the RSI in early October. With a dividend yield of 3.89% and its continued strength in its niche in the spirit and wine space I continue to see CSW.A as an accumulate.

Next time I will examine the charts for Female Health Company (FHCO Nasdaq)  for Rob.

Make it a profitable day and happy capitalism!

 

 

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