What you say is very true. A profit upgrade would be a welcome announcement, but I think it may be something different. The UK announcement would however, be a good enough catalyst to push it beyond 27.5c and onwards.
I think this is another shake off for more accumulation before the next climb up because of the pattern of trading over the last fortnight. Someone is definitely looking for a stronger position before they the stock goes to 30c.
On Monday there was hardly any resistance past 27.5c - 300,000 shares at most between 27.5 - 30c. At 30c there was around 500,000 resistance. Both of these could have been line wiped. 1.2 mil between them.
MBE is a bit of a leaky ship when it comes to announcements and I only know this because I used to be one of the grapes on the vine. There is something stirring the pot right now and the uptrend is here to test the new high, it is the strongest movement so far. It could be the stock finally coming into true value, or coming in line with forward PE.
In 2013 - 2014 when it gained that high, it rose well and did have to retrace to consolidate, but if you track the bollinger bands, especially with this uptrend, it looks very promising. As of now, I cannot say for certain if there is an announcement coming out this week but there is one that is due before the end of FY.
Don't forget about the advertising business.
I hope for a stronger market tomorrow to continue the uptrend.
MBE Price at posting:
25.0¢ Sentiment: Buy Disclosure: Held
