Unloved, page-20

EXP has been following a downwards channel for some time, the 20% increase just looks like a return to the top of the channel, more on the TA than FA, probably nothing to do with anyone knowing anything fancy behind the scenes.

I've taken an interest in EXP since many years ago when I used to regularly skydive at a couple of places which ended up being owned by EXP, and back then I heard a few things on the dropzones which made me keen. I did hold for a while but not for long (sold out around break even when it seemed things were probably going to go sour or at best sideways, which turned out to be the case) and have quietly watched from the sidelines since then.

The global economy is not in great shape, tourism isn't thriving and I can't see it improving in a hurry, China in particular is financially terrible. Sport skydivers like myself were never significant earners for the dropzones (whoever owned whichever one at the time), it was always the tandems (which are very important for EXP) who were subsidising our sport. I can't see much reason to get excited about EXP in terms of near term growth/increasing revenue, but longer term it might be good; the price has continued to decline to the point where it's going to look like fantastic value as soon as we do see any economic recovery. I suspect we will see 30c+ again at some stage so I've kept it on my watch list, but patienceis is definitely required. If we break out of this downwards channel it might be a good short term trade. If it stays within the channel I'll consider buying in next time it bounces off the bottom; I can't imagine it falling through the bottom of the channel, so worst like case scenario it goes sideways from there, meaning an easy escape at break even.