Aristocrat Leisure is an Australian gambling machine developer and distributor, which has its administrative and research headquarters in Sydney. The company has marketing and development offices in South Africa, Russia and the United States.
“Aristocrat has been a favourite stock of ours for a long time because, outside of COVID, the business has been able to reliably deliver double digit earnings growth each year,” said Michael.
“The chart below is interesting here because the share price is now retesting the 2020 high,” Michael added.
Should you sell ALL?
“Although it might stall here for a few days, I don’t think the old high is a reason to sell. On the chart, we can see that the share price rally stopped short of the old high in November. It then traded sideways for a few months. This sideways motion would have been caused by some investors trying to sell out just before the old peak, but they were met by enthusiastic buying along the way. Those sellers were mostly done by the end of March, and this has enabled the share price to steadily move higher again. So although the share price is near the old high, I wouldn’t be too concerned. The major sellers have left the building and ALL shares should be trending into new highs very soon,” Michael said.
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