...about FCCN: Once upon a time these shares were 500p. More recently they dropped down to sub 30p (October 2013), then they rose superbly up to almost 100p, before settling around 60-70p. It’s an interesting one because for years it was loss-making but, now that the founder has returned to the helm, it seems to be turning itself around, and the future now looks bright. Shareprophets’ Chris Oil reckons it’ll return a profit of £300k+ this year (for the time in ages) and that it’ll do far far better going forward. Why? Because FCCN has many leases on loss-making / closed stores and that’s the reason it’s still loss making, BUT all of these will terminate during the next 3 years so - even if there isn’t a retail upturn like some people predict – FCCN will become a very profitable business again. If it does then those people who bought the company at sub 30p – when at the same same value of it’s cash in the bank! – will be laughing. But I don’t think it’s too late to invest in this superb value play because, even now, it is trading at a very modest 12% premium to its TNW, it’s still incredibly cash rich, and has huge multibagger potential in my eyes. It seems to be a superbly strong buy if you plan on holding for a decent 3-4 year period I’d say, and I’d be very interested to hear what other people think? (Interim results are out on 18th September by the way)
Back to the technicals, horizontal resistance at the top of wave 1 has been well and truly broken on the weekly close above 62.30 level, signalling that wave 3 has begun. This impulse wave should comprise of 5 minute waves and have commonality in terms of time and price with wave 1 as discussed in the previous update. The Fibonacci relationship of 1.382 and 1.618 can be applied to this structure assuming there is no wave extension. In any impulsive wave of any degree, either wave 3 or 5 extends, but it is most common to find the extension in wave 3. If this occurs the next Fibonacci series can be applied in the commonality with wave 1 using the following numbers, 2.382 and 2.618 . Therefore, if wave 3 extends then the price targets would be 90.5 and 94.42. As always most important to monitor and observe how the count unfolds, and then label accordingly. Best regards
Just been through the Chris Oil article. The plus side to FCCN looks to be that the group remains debt free and ended the year with a strong cash position. Things do look like they could be turning things around. Be interesting to see how this goes this week. Could be a shrewd long term buy for your SIPP or ISA this one.
Good spot londonmf and the articale is sensible and well written. Interesting re what he is saying about Marks not on going for ever. I am expecting a pick up tomorrow.
chris oil (who ? ) on share prophets reckons short term price should go to 120p , 500p within 3 years. very cheap on price to sales. some of my best investments have been made in buying bombed out retailers , recently Supergroup and before that Next. I have been buying FCCN from about the 50p level but will be buying more tomorrow ahead of Thursdays numbers. A turnaround story combined with an improving economy should be just the ticket.No idea who Chris Oil is and whether he is widely followed or not but you can read his piece on www.shareprophets.advfn.com.
SS15 Wholesale order book will be significantly up on SS14. Can't wait for Thursday, hoping for profit upgrade.
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