fundamentals to charts
Attached are the charts of Auspine and Bristile. What I would like to
demonstrate here is how to tie the fundamentals to the chart. These two
companies came to my attention through a profit announcement. Both companies
have dramatically increased profits from the previous financial year. Upon
investigation of the fundamentals, the following was evident:-
P/E Ratio Dividend Yield
Auspine 8.9 6.94
Bristile 7.4 8.4
These figures reveal undervalued companies if compared to the market averages
and given both had announced near doubling of profits, the charts are worth
a look.
As you can see both charts look like they are in a new up trend and this
would support the fact that profits are increasing. Potential targets for both
are at midpoints which are highlighted by the horizontals lines marked 50%.
Other things of note from the charts are the moving average cross-over and
relative strength indicator rising bottoms on both.
