whats the best stock in the top 50 and why, page-11

Hi Clark,

OK. Let's compare the current technical picture of IAG with WOW (I think this is one of your favourite stocks.)

IAG - Daily and weekly MACD are both positive.
WOW - Daily MACD - Positive. Weekly MACD - Negative (sign its in a bear market.) Don't buy a stock with a negative weekly MACD

IAG - Down trend line from July has broken to the upside. Now in an uptrend.
WOW - Down trend line from December has not been broken to the upside. Now in a downtrend.

IAG - Above the 50 Day Exponential Moving Average.
WOW - Below the 50 Day Exponential Moving Average.

IAG - DMI is positive.
WOW - DMI is negative

IAG - On Balance Volume has broken its down trend line.
WOW - On Balance Volume is in a down trend.

IAG - The current high on the OBV is above the previous high - while the high on the share price is below the previous high. Positive divergence.
WOW - In a down trend - no sign of a positive divergence.

Let's look at some simple fundamentals:

IAG: PE - 15.32; Dividend Yield: 7.7%
WOW: PE - 23.45; Dividend Yield: 2.8%

In IAG's case, the dividend return is very good and the PE is not catastrophically low which would be a sign that the market believes it will fall.

I think the market is saying that WOW is overpriced at these levels - growth is problematic.

IAG is a "Fallen Angel" - share price is turning around. Add in a premium for being a takeover target (Is WOW?) and I think there's a compelling case vis a vis WOW to buy IAG.

Of course, that is just one stock - I picked that one because I believe, Clark, that it is a favourite of yours.

Cheers
Red