MULTIBAGGER INVESTMENT CALL – PENTAMEDIA GRAPHICSMonday, March 8, 2010 6:33 pm
Company – PENTAMEDIA GRAPHICS LTD.
INDUSTRY- MEDIA & ENTERTAINMENT
BSE CODE – 500329
52 WEEK HIGH- 4.56
52 WEEK LOW- 1.22
The stock is under a primary downtrend from last 8 years and now has started the process of forming a major base. The stock is trading in a very slight upward channel which is consistently making higher peaks and higher troughs (as can be seen in Daily Chart). Also the volumes have started to pick up on rallies and decline on reactions. Currently the stock has retraced to its up sloping 200 DMA at 2.75 levels which is a good support for it. Coming on to the weekly chart , the stock is forming a symmetrical triangle pattern , which often turns out to be a trend reversal pattern ( in this case possibility from downtrend to uptrend) . Supplementing the opinion by looking at the momentum oscillators, the stochastic is giving a Buy Signal from the oversold region. We recommend an Accumulation for the stock around 2.30-2.5 with a strict stop loss below 1.90 for targets of 4.50, 8 and 13 within 12-15 months time frame.