UGL to rally 8% into dividend

by Michael Gable

UGL pays a handy 6% full franked yield, with the next dividend date in February next year. On the chart it appears to have had a 4th attempt at breaking through the $10.95 level. Often if a stock can successfully break through on the 4th attempt, a big rally follows. If we measure the gap from the recent low to the breakout, it gives us a move in the order of 90c. That coincidentally takes us to where the stock gapped down in August. This event is therefore a buying opportunity for UGL. Traders should place a stop loss just under the breakout line.

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Disclaimer: Michael Gable is an Authorised Representative (No. 376892) and Fairmont Equities is a Corporate Authorised Representative (No. 444397) of Novus Capital Limited (AFS Licence No. 238168). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.