Technical View With an increase in US-sourced revenue, CPU is another stock that should benefit from further gains in the US market.
We last reviewed CPU in mid-March, placing a Buy recommendation and an $11 target on the stock.
It has just overshot our target level and looks destined to advance further.
Momentum remains positive and volume has improved dramatically over the past few months. Both point to continued upside.
The price action since the February high can be construed as an ascending triangle. If this interpretation is correct, then the stock can move towards the $12.50 area.
We maintain the BUY recommendation.
Company Summary CPU offers two major groups of services to the global securities industry. The first is a global registry business and the second is a range of investor relation services, which range from employee share/option plan management to stakeholder relationship management systems. The company offers its services in 17 countries, including Australia, the UK, the US, Canada, Germany, Hong Kong and South Africa. CPU has expanded rapidly with the Equiserve acquisition in the US.
CPU Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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