Toromont Industries Ltd. : Supported by 50-days moving average
By Lara Villeneuve
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
CA$23.05 | CA$25 | CA$22.1 | +8.46% |
For fiscal 2011, revenue grew to 1.38 billion dollar against 1.2 billion dollar for fiscal 2010. Net earnings increased 34% to 102.6 million dollars due to better revenues and margins. Rentals and products support recorded revenues close to the annual levels during fourth quarter 2011. For 2012, perspectives are encouraging with a substantial order volume and confident financial estimations.
Technically, the share has risen by 60% until the CAD 25 resistance. At this level, the stock has fallen back to CAD 22.9 short-term support, a convergent point with the 50-days moving average.
Therefore, it would be a good opportunity for investors to take a buying position at the current price to target the CAD 25 resistance. A stop loss should be positioned below the CAD 22.1 short-term resistance.