Today, 24 stocks are on the positive breakouts list, while the list of stocks with negative breakouts climbed to 39.
Of note is the concentration of resource stocks on the negative breakouts list. There are 18 energy stocks on the negative breakouts list, representing 46 per cent of the stocks. There are nine stocks on the negative breakouts from the materials sector. These two sectors, energy and materials, account for 69 per cent of the stocks breaking to the downside. In other words, continue to avoid stocks in these sectors as they remain under pressure.
Lucara Diamond (LUC-T) surfaced on the positive breakouts list last week after the company reported remarkable diamond discoveries in Botswana, including a baseball sized, 1,111 carat diamond – the world's second largest gem quality diamond recovered in history. Headquartered in Vancouver, B.C., Lucara is a diamond producer with its 100 per cent owned Karowe mine in Botswana, Africa. In addition, last week management announced the recovery of two other large diamonds, a 813 carat diamond and a 374 carat stone. Continued discoveries announcements are catalysts for the stock.
According to Bloomberg, there are currently eight analysts whom cover this stock and all eight have "buy" recommendations. Price targets vary widely by analysts and are as follows: $2.20, $2.25, two at $2.50, $2.70, two at $2.91, and $3.70. The average one-year price target is $2.68, implying a potential price return of 24 per cent.
Analysts have been revising their sales and earnings estimates higher for 2016. The consensus revenue estimate is $217 million (U.S.) in 2015, rising 13 per cent to $245 million in 2016. Consensus earnings per share estimates 19 cents in 2015, and 18 cents in 2016.
Lucara pays shareholders a semi-annual dividend of 2 cents (Cdn) per share, or 4 cents per year, equating to an annualized yield of 1.9 per cent.
Year-to-date, the share price is basically unchanged, down 1 per cent. The stock price soared 34 per cent, on high volumes, over the past two trading day after reporting the amazing diamond discoveries. The stock has technical resistance at $2.20, then between $2.40 and $2.50. There is downside support at $2.
The diamond industry has been under pressure with weakness in small and medium sized diamonds. Declining demand from Asia has caused an increase in inventory levels, driving prices down.
As always, I strongly encourage readers to consult a financial advisor, and to do their own proper due diligence before taking any investment action.
Below is a list of stocks in the S&P/TSX composite index and the S&P/TSX Small Cap index that are technically breaking out, reaching new 55-day highs or lows.
24 Positive Breakouts | |
---|---|
HOT.UN-T | American Hotel Income Properties REIT LP |
CFX-T | Canfor Pulp Products Inc |
GIB.A-T | CGI Group Inc |
DSG-T | Descartes Systems Group Inc |
ECI-T | EnerCare Inc |
ESL-T | Enghouse Systems Ltd |
ET-T | Evertz Technologies Ltd |
EXE-T | Extendicare Inc |
FFH-T | Fairfax Financial Holdings Ltd |
FN-T | First National Financial Corp |
FSV-T | FirstService Corp |
GRT.UN-T | Granite Real Estate Investment Trust |
INN.UN-T | InnVest Real Estate Investment Trust |
ITP-T | Intertape Polymer Group Inc |
PJC.A-T | Jean Coutu Group |
LB-T | Laurentian Bank of Canada |
LUC-T | Lucara Diamond Corp |
NBD-T | Norbord Inc |
NPI-T | Northland Power Inc |
NWH.UN-T | NorthWest Healthcare Properties REIT |
OTC-T | Open Text Corp |
PWF-T | Power Financial Corp |
SAP-T | Saputo Inc |
SRU.UN-T | Smart Real Estate Investment Trust |
39 Negative Breakouts | |
ASR-T | Alacer Gold Corp |
AGI-T | Alamos Gold Inc |
ALA-T | AltaGas Ltd |
BNK-T | Bankers Petroleum Ltd |
BNP-T | Bonavista Energy Corp |
BXO-T | Boulder Energy Ltd |
DOO-T | BRP Inc |
CBL-T | Callidus Capital Corp |
CEU-T | Canadian Energy Services & Technology |
FRC-T | Canyon Services Group Inc |
CMG-T | Computer Modelling Group Ltd |
CJR.B-T | Corus Entertainment Inc |
DDC-T | Dominion Diamond Corp |
DC.A-T | Dundee Corp |
ENF-T | Enbridge Income Fund Holdings Inc |
EDR-T | Endeavour Silver Corp |
ESI-T | Ensign Energy Services Inc |
GUY-T | Guyana Goldfields Inc |
HGN-T | Halogen Software Inc |
LSG -T | Lake Shore Gold Corp |
DR-T | Medical Facilities Corp |
MTL-T | Mullen Group Ltd |
NGD-T | New Gold Inc |
NIF.UN-T | Noranda Income Fund |
NVA-T | NuVista Energy Ltd |
PRE-T | Pacific Exploration and Production Corp |
POU-T | Paramount Resources Ltd |
RKN-T | Redknee Solutions Inc |
SES-T | Secure Energy Services Inc |
XSR-T | Sirius XM Canada Holdings Inc |
SGY-T | Surge Energy Inc |
TCK.B-T | Teck Resources Ltd |
TH-T | Theratechnologies Inc |
TOU-T | Tourmaline Oil Corp |
TGL-T | TransGlobe Energy Corp |
TCN-T | Tricon Capital Group Inc |
TDG-T | Trinidad Drilling Ltd |
VET-T | Vermilion Energy Inc |
WTE-T | Westshore Terminals Investment Corp |