After the recent negative publicity for Agility, the stock has dived down making it the worst performing stock in the Kuwait Stock Exchange for both Q3 and in December. In Q3, the stock fell 50% versus the KSE index which shed 10% only. After the lawsuit filed against Agility in mid-November (Details), the stock tumbled 37.5%, then it took a breather in mid-December. The breather was short-lived as Agility was hit by yet another shock and shed 24.7% from its December highs as DynCorp International Inc. terminated one of the company’s units as a subcontractor of a logistics program.
Despite that it has been a while since I looked at Agility’s numbers, I do think that much of the bad news is already priced in. Looking at the chart below, the stock has broken its 15, 50, 100 and 200 day moving averages. However, it is approaching strong resistance levels around KD0.600. I recommend taking a position in Agility during the next few trading sessions and exiting that position once the stock rebounds.
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RSI must have surely tanked on this one….Agility has a tendency to bounce back from steep sell offs given that it is a large cap and followed closely by the inv community. But after that the stock trades sideways for months….
I agree with the bounce back call…the elastic is stretched and the risk to reward looks favorable, I will like to provide liquidity as a buyer….but stop loss and out at 520 levels.
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i would buy at 600 and sell at 850
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True.. the “indictment” might be priced in.. but how certain are you that Agility won’t be hit by another shock?
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I take back my comment, good call Saud!
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the rebound didn’t last for log and the stock is free falling. Although I still think its a good technical buy, I’ll dig into the numbers and see if its fundamentally attractive as well.
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