Trading Ideas

AECI could join mining play with big BANG

$JSEAFE could join mining play with big BANG by SchalkLouw on

AECI currently one I’m watching very closely. Share price little bit under pressure lately, which currently look good for an entry point. AECI is a South African-based explosives and chemical specialty company. The company is engaged in offering a range of products and services to customers in the mining, manufacturing and agricultural industries. Could be something to look at, with the recent uptick in the mining sector.

Price retracted since its results announcement end of February. The 50-day moving average is however making a lovely little smile , telling us that the trend is still nice and healthy. It is also getting mighty close to the 200-day – so the possibility for a Golden Cross will be monitored.

Fundamentally the company is healthy (read our report here:…) . Thomson Reuters currently got a consensus target price of R130.29 on the company and with a dividend yield of 5.3% and FPE of 7, the company is clearly in value territory.

Should $JSEAFE break a close above the 200-day moving average (R97.50), next resistance levels should be found at R105.94. A break and close through these levels could see us test last year’s highs of R120/121.
Should the price turn downward, support could be found at the 50-day moving average R94.94, with a break through these levels only seeing support around the R81 levels.

Schalk Louw
As Portfolio Manager at PSG Wealth Old Oak and with over 20 years’ experience in the investment industry, Schalk has consistently delivered solid returns to his clients and has certainly become one of South Africa’s most well-known strategists. He started his career in 1994 at the stockbroking company, Huysamer Stals (later ABN Amro). He joined SMK Securities in 1997, (later became BoE Personal Stockbrokers) and was later appointed as director and branch manager. In 2001 he co-founded Contego Asset Management and managed the company as CEO up to March 2014, after which he joined PSG Wealth Old Oak. Schalk has also become a regular household name with investors, with his reports being published in many of the national press. He completed his MBA in 2008.

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