a turnaround takes shape

http://asxguru.com.au/2011/03/rcr-tomlinson-limited-rcr-a-turnaround-takes-shape/

Last week RCR Tomlinson Limited (RCR) released their half year results and they were very impressive in my opinion. The initial reaction from the market was luke warm though, and that could probably be put down to a still very jittery market. The associated press release that followed the half-year report showed a very strong improvement on the operations.

Sales had increased by 12.9%, earnings before interest and tax increased by a solid 127%, and debt levels were reduced.

With the mining boom continuing in full swing, a mining services company like this one should be set for a rosy future. The report showed that management are making good progress in recovering from the financial crisis so I reason that the future looks promising for this company.

As I had mentioned earlier, the initial reaction from the market was mute, however, buyer interest did start to take shape a few days later. The above chart shows the initial break past a major resistance line at $1.55. This presented as both a short term buying opportunity for the CFD traders, and also a good entry point for those who are prepared to make a long-term investment.

Today, the stock price broke to another new 12 month high and once again a trading opportunity presented of those who dabble in CFD?s. Of the blue-chip stocks, RCR Tomlinson was one of the top percentage gainers today. The stock closed just off the day?s high at $1.74 for an impressive 8% gain.