Technical Summary: has been the market darling of the NZX. Fundamental performance has been transferred to technical with the stock up over 170% YTD. The 5 year chart looks more like a chart for crypto-currency than a stock. With the stock advancing 210% over the last year it has provided investors with numerous low risk buying opportunities as illustrated above with the stock bursting through resistance on high volume – screaming BUY ME. The stock ran through $6 per share and is now clearly overextended. We expect that the stock is now vulnerable to a pull back or a consolidation. Needless to say we believe that there will be resistance at $6 per share as it will be a logical place for many investors
to be taking profits. We would like to see digest these gains during a consolidation period before potentially embarking on further upside. For those wanting to initiate a position there is nothing to do. Unless you have specific profit targets there is also no reason to sell. However, holders would be advised to have a reasonably placed stop loss to protect wonderful gains in case of character change.