EEI took a hit after hitting its 52 week high at 4.50 last Oct 2010. After it’s awful downtrend channel that went halved from 4.5 to 2.80, it finally bottomed at a 5x P/E Ratio. A very reasonable and cheap fundamental guideline in stocks.
Lots of issues are roaming around who will be the contract developer of the upcoming PPP tollway projects, Residential buildings and other Construction business. With all Top 30 having an average of 15-17 P/E Ratio, 5.0x with a good earnings will definitely shine when everything is expensive.
With the current uptrend, it made a parabolic spike from 3.83 to 4.25 in just 1 day. RSI hit 91 and very overbought. Once it corrects to 3.5-4.0, treat it as a BUYING opportunity, with a possible return to the 2010 high of 4.50, and long term may hit its all time high.
No comments:
Post a Comment