This week I covered a company which contains a bunch of potential from a fundamental and technical viewpoint. The company is trading above the 200 day SMA which is always a bullish sign as well as the 50 x 200 golden cross back in March 2013 again another bullish divergence…
PPR has technically looked a decent play for long enough however with traders taking some decent money out of the stock the fundamentals have really turned the corner, Pentagon are now cash positive and the new management have brought in a great experience and cash flow which is undoubtedly the future to moving PPR products and services forward.
The attention to detail comes from the 2009 with discussion of a possible takeout by Westminster (WSG) the story as I understand it is the deal broke down due to poor management and finance at PPR back in 2009 ” Lets fast forward 4 years to the new look PPR ”
*Finance cash positive
The company secured a contract announced here in Feb 2013 worth £1.9m alone. Coupled with its strong defence of any slipping valuation along with continuous bullish statements from Pentagon the suggestion that PPR are now posturing for a bigger deal (Take over, contract or otherwise) is something that can’t be ruled out.
21p looks to be the ceiling and if PPR can move beyond this level then a technical breakout are the winning lottery numbers of the aim market. If it breaks then the upside is significant from theBuy Rec at www.shareprophets.com the link is here.
Plenty of things to consider here and much through conjecture as we try to validate the possibilities into reality.