Sunday, March 8, 2015

Stocks I love to hate:

I always ask myself three questions before the selection or rejection of a particular stock – the first being the technical picture which gives me the trend, the relative perform and the money flow direction. The second question is that of over-crowding or being over-hyped by the business media and the third question is - do I like the business model?

Unfortunately I can’t plot the last two questions and so I just create a personal list of names I love to hate – such as Crescent Point (CPG), AutoCanada (ACQ). Amaya Gaming (AYA), Avigilon (AVO) and Wi-Lan (WIN) – just to name a few.

Here are clips (out of context) from The Globe and Mail Published Sunday, Jun. 29 2014 about Avigilon, “The hype surrounding Avigilon went into reverse in May when the company’s chief financial officer, Bradley Bardua, resigned the day before first-quarter earnings were to be announced. The company cited personal health reasons. Mr. Bardua was the third executive to leave Avigilon within six months”, and “Skeptics of Avigilon’s staying power have long asserted that a powerful competitor could squeeze the company on price. And yet, Avigilon’s improving margins are solid evidence that price pressure has not yet materialized.”

The weekly bar chart displays a broken uptrend, declining money flow numbers (negative divergence) and a long series of negative key reversals – to bad I can’t plot the business model. For more street talk about Avigilon visit

1 comment:

edmagee said...

Good evening Mr. Carrigan,

Which money flow indicator do you use?

Thank you.