Hi guys, here’s my Philippine stock pick of the week – Liberty Telecoms Holdings, Inc. or LIB in the Philippine Stock Exchange. This company is a joint venture between San Miguel Corporation (SMC) and Qatar Telecoms (QTEL). As the name “Liberty Telecoms” suggests, they are involved in the telecoms industry. They currently offer Wireless Interoperability Microwave Access or WiMAX Internet connections and planning to offer other products as well in the near future. Many of the San Miguel owned companies have flown immensely like Petron Corporation (PCOR) and San Miguel Brewery (SMB) so could this be the next big one?
In my technical analysis, Liberty Telecoms has freshly broken out from a classic ascending triangle area pattern closing today at its all-time high at PHP4.90 with a 14% gain and a heavy volume. After consolidating sideways for more than a year, it could now surge higher without any resistances blocking its path. My conservative target price for this is PHP6.00. I got my target price by getting the size of the base of the triangle added to the breakout point. In case LIB doesn’t push through with its breakout, it could descend to the immediate support which is the triangle’s resistance and bounce back up. If it further drops below that level, the next support could be the triangle’s support.
More on LaidTrades.com …
