Tuesday, September 13, 2005

Pfizer set to fall...?


Pfizer's stock (ticket : PFZ) really doesn't look that healthy. I initially bought some stock at $24 in february, believing that it had bottomed out after the long decline that had lasted a year. I also listened to analysts and institutionals, shouting a $70 or $90 target by 2007 (yeah right!).
Technical indicators show a different picture here. Since the rebound to $28, the stock has shown ever lower tops; as we speak, MACD is well below zero and stochastics are showing a top. The stock remains below the 100-day moving average. All this indicates a selling signal.
If PFE falls below the $25 support level, chances are big it will drop even lower.

Pfizer may be a pharmaceutical giant with a big name and reputation, it's stock looks less good. Fundamentally, more and more product patents will expire in the next years and there are no clear signs of success yet with replacing products.

I played safe and sold my position yesterday at $26.3 ..... let's check back in a couple of months to see if it was a good decision!

Monday, September 12, 2005

SWC - Still Water Mining Company : interesting potential !

During a recent meeting about technical analysis, I was advised to look at the stock SWC (Stillwater Mining Company ) - $8.78 on sept. 9th.

This company is one of the world's leading producers of platinum group metals (PGMs) and the only significant primary producer of palladium in the Western Hemisphere.
Palladium is a metal that is gaining in importance for it's use in emerging technologies like fuel cells (hydrogen engines), advanced diesel technology, electronics, etc.
SWC owns about 20% of the global Palladium market, with 70% owned by a Russion group. So if you want to invest in the Palladium market and want to bet on a western investment, SWC is a good candidate. Chats of Palladium price can be found here.

From a fundamental point of view, SWC looks a very good and stable company.
My online broker, Keytrade, gives the following rating for SWC :
  • Overall fundamental quality score (BETA) : 73.64 / 100 = very good
  • Company structure score : 71.62 /100 = very good
  • Solvability score : 85.42 / 100 = excellent
  • Rentability score = 65.73 / 100 = good
  • Growth score = 71.79 / 100 = very good
I'd be interested in your comments regarding fundamental analysis of SWC.

From a technical point of view, SWC has upper resistances of about $9.15-$9.30 (with which it is already flirting today) and then $12. Once price moves higher than $9.30 and stays for a while above $10 (lower resistance), you can expect it to stay in that area and move higher if Palladium and Platinum price remains stable or grows.

Today, sept. 12th, the MACD is above zero and is set to go higher (overall buying in the market). A buying signal is set when the slow stochastics form a bottom (this happened a couple of days ago, see chart.

In the long term, this stock could have quite some potential, but I keep in mind a stop loss order of around $8.

I purchased some SWC last friday at $8.78. Let's see what that gives.

I welcome your comments and viewpoints on SWC !