daytrading july 30 pre-market, page-2

QAN........ In with a chance

Following on from last Thursday's wide range Bullish candle,Fridays doji gave me an entry signal.Pulling apart the daily and upon closer examination of the 10 minute intraday candlestick patterns,in the last hour of trading, there were a few tails,indicating buying pressure.Good enough for me.

The Fundalmentals.
Well if you can work out how much QANTAS is worth,good luck.With a NTA of around $2.40 a share and Analysts Valuations ranging from approx $1.25 to $2.20 per share,you would have to conclude that Qantas is UNDERVALUED at the moment.And I don't know what it is,but the Financial Media,analysts,commentaters and others all have it against airline stocks.But our old friends,the CHARTS,tell a different story.If you look at the XAL here at http://www.bloomberg.com/quote/XAL:IND....,you will see that it has risen 13.89% this year.Not a bad return in a poor investment evironment,and so much for the media telling us that airlines are Poor investments.Least in the US.

OK...so on to QANTAS.Working on the theory of where there is smoke,there is fire,and with the LEAK the other day,I am HOPING for a good announcement to put a boost under the share price.Assuming the leak has come from the latter 'tidy-up' stages of negotiations than from the earlier more confidential high level stages,than hopefully Qantas will bring out some exciting news soon,because here is the EXCITING part.

The exciting part.

QANTAS,because of it's blue chip status and strong financial strength enjoys a high LVR ratio of 70% if traded through Comsec.So,if any of you know how to trade on Margin,it means for every $10,000 you put in,you can borrow $7,000.So,to cut a long story short (you do the arithmetic),if you continue to borrow every time the share price rises 10% the maximum that the LVR allows,by using no more of your money,by the time the share price reaches $1.79 (assuming it does),your position would be worth $40,979 on your original $10,000.A 4 BAGGER.On a BLUE-CHIP.....AMAZING.Using the same methodology,if the price climbed to $2.15 you would have a 5 BAGGER!

(yea,I know,for the mathematically enhanced,it would work out a little more,but I'm keeping it simple.Perhaps one of you would care to post a spreadsheet of the above methodology)

Anyway.....I'm excited and I will leave you with this GOOD NEWS:-

Boeing posted a surprise improvement in second-quarter net income as demand for passenger jets thrived

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10822361

Hardly seems a business on t skids to me.