Chart - ECS, page-107

I don’t know whether this latest breakout spike will just turn into a one-day fizzer, with the price slinking back to the long sideways trading channel, or if it will have legs and finally be the start of a lovely uptrend.

I see myself as a hybrid fundamentalist/ breakout investor. in other words, I like the company doing a breakout from a sideways pattern to have sound fundamentals that have been improving in the background while the share has been stuck going sideways for months.

i believe this is what ECS has done.

Here is its chart for the last 6 months or so, with market sensitive announcements marked on it,which I have numbered 1 to 8. the details of each of those market sensitive announcements are listed underneath the chart.

you can see that, despite all of this good news accumulating, the share price has essentially done nothing, apart from a bit of a flurry on announcement days.

It doesn’t make sense that company-re-rating, good news can keep accumulating forever. Eventually, something has to give! Maybe last week’s announcement won’t be the one to launch ECS's uptrend, but something has to launch it soon!




1. 26 June: ECS secures 2 binding agreements worth $11.9m

2. 9July: quarterly report showing operating cash flow profit of $703,000

3. 31 August: full year result showing ECS achieves positive EBITDA

4. 2Oct: ECS wins $24m supply agreement with medicann

5. 15 Oct: quarterly report showing cash flow profit of $282,000

6. 12nov: ECS launches vapes and pastilles products

7. 15 Jan: quarterly report showing operating cashflow profit of $321,000

8. ECS secures $9m UK off take agreement