MG Unit Trust (MGC.ASX)

2 October 2017




Technical Summary: Pretty ugly chart for MGC that reflects the issues that it is having with its underlying business. Since July 2015 the stock has gone from its high of $2.50 per share to a low it made in June of this year of less than 60 cents per share. The stock has recently shown some resilience within this trend however and has made a series of higher lows. This is on the back of potential takeover speculation for the company. There appears to be multiple suitors looking to step up and buy the company. Smart money or perhaps insider money seemed to have figured out this deal earlier than when it was made public with the shares showing considerable appreciation before any offical comments. Smell a bit fishy? could be, charts often give indiciations of where smart money is buying and stocks often make their initial move before offical confirmation by news arrives. Anyway, despite the stock getting close to significant overhead resistance it could be buyable here as a takeover trade or it one was trying to pick the bottom. The risk being if the takeover deal falls over the stock will likely lose significant support.

Multiple takeover offers. Do the charts indicate potential insider trading?

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