Bend it like Beximco

Thursday, 5th July 2012 12:27 - by Moosh

The share price of Beximco Pharma (TIDM: BXP), at least for as long as I have been invested in it (nearly 2 years) has never reached its net asset value..

yet the company is continually making a reasonable profit and issuing stock dividends. Do I question why? Not really. I still just play the price according to a short term oversold/overbought swing, but in companies which are profit-making and issuing dividends I am more inclined to keep the value of the gain in the form of shares, but each to their own. Towards the build-up of the 2011 final results saw a number of technical boxes ticked:

1. Major volume on 19 March 2012 after a bullish divergence in money flow since the start of March 2012.

2. Two slow stochastic oversold-overbought cycles between 15 March 2012 (20p) and 28 March 2012 (23.75p), and the starts of April 2012 (20.5p) and May 2012 (28p).

3. Bearish divergence (higher price highs versus lower indicator highs) with slow stochastic oscillator, money flow, and ultimate oscillator for the peaks of 2 May 2012 and 15 May 2012.

4. Hourly Coppock curve went positive from 24 April 2012 at ~23.75p.