In our “HOT” stock article today, Michael Gable, Managing Director of Fairmont Equities, gives more details on his rev elation that the chart is indicating that now’s a good time to buy Aristocrat Leisure (ALL).
Aristocrat is a $44 billion gaming company that operates all over the globe. Over time it has moved beyond the traditional poker machines and into online gaming.
“We believe there’s scope for both significant group margin expansion and upgrades to consensus earnings per share (EPS) estimates from a greater emphasis on highest-margin social casino gaming” Michael said “and the potential for further EPS-accretive M&A because of their strong balance sheet position.
“The chart is also indicating that now is a good time to buy.
“The trading range in ALL had been tightening up from April, where the lows had been trading higher and it was forming some clear resistance near $68.50.
“ALL has now made the breakout above that resistance line and current levels are a buying opportunity.
“We expect it to rally from here and retest the all-time high where we can then reassess,” Michael said.
