Date of Data Capture: 19/10/2016
Name: CLEARVIEW WEALTH LTD (CVW)
Classification: Investment Management
Current Price: $1.13
Market Capitalisation: $747M
Forecast EBIT Growth: 21.21%
Gross Yield: 2.63%
Consensus Price Target: $1.29
# Covering Analysts: 3
Discount at Current Price: 14.16%
Price Target Trend: Increasing
Signal Time Frame: Quarterly-Monthly
Trend Bias: Up-Flat Long-Short
Medium-term: Positive Neutral
Focus: Capital Growth
Set up Notes:
• CVW has historically made steep jumps in value followed by periods of sideways-ranging consolidation before making more steep jumps in value.
• Another jump looks likely again now with good momentum and signalling across most timeframes and are backed by strong fundamental forecasts and performance.
• They have just cleared through some resistance structure at $1.10 and should have blue skies in front of them once past $1.15 and have good support layered down at $1.10, $1.00 and $0.90.
Growth Focus: ClearView Wealth Ltd (CVW)
Our primary focus here is capital gain, we will select our stocks from the ASX top 500 All Ordinaries Index.
Sometimes it can be hard to see a good opportunity in the market while at other times a company will seem to stand out in stark contrast from the crowd - that is what we see here with Clearview Wealth Ltd (CVW) coming out of consolidation and beginning to step forward once more into the open. Many strongly performing stocks will momentarily pause for breath along their climb in price, ranging down and sideways before eventually resuming their climb. This seems to be the case with Clearview, and with an excellent fundamental outlook and important resistance breaking just last week we think they have further growth in their sights.
Beginning operations in Sydney 1976, Clearview is a wealth management, life insurance, and integrated financial services company that has been seeing remarkable growth, particularly in life insurance and financial advice. Favourable future financial forecasts follow already impressive results, with almost panoramic growth seen continuing across sales, income, profits, earnings and margins. Their 2.63% dividend is not to be overlooked, but our view is that investors should primarily be attracted to the capital growth prospects CVW presents right now and that this potential remains barely hidden in plain sight.
This opportunity is probably best viewed from a medium-term timeframe where we can witness their strong uptrend going through its first steps and entering the landscape back in July 2012. From that vantage point around $0.50 we watched them rally almost 120% over two years to reach its multi-year summit of $1.14 by September 2014.
Since then the price has been taking the scenic route back down south to touch important dynamic support around 85c before heading north once again. Aggressively advancing back through linear and structural resistance we find them standing in front of a vista capped only with blue sky overhead as they have risen above their 2014 peak in just the last few days.
The technical picture looks extremely promising with excellent correlation observed in the longer-term signalling and timeframes, with fresh strength becoming more obvious in the shorter-termed views. That said, we need to remain on the lookout for (and expect) volatility around these kinds of breaks, but we can also observe good support layered down between$1.10 to $1.00 with some decent residual backing stretching down to 90c if things go from spectacular to just plain spectacle.
Strong price action is attractive and should be seen as a good thing - this is what we are following here, though that strength is also supported and clearly flanked by strong fundamentals and technical signalling. With everything now coming into focus, we fully envision Clearview to keep climbing and continue being a scene stealer.