Today's analysis of Gibson Energy Inc. (GEI) will conclude the comparative analysis of the stock against Husky Energy Ltd. and Suncor Energy Inc. and determine which is the best candidate for an investment.
This will be the third time since 2011 that I inspect the particulars associated with GEI. The last time was on Oct. 9, 2013, when the shares were trading for $24.43. Piyush had bought in at $25.50 and wanted to know what could be expected from an acquisition in the United States and the development of a crude by rail terminal. My thoughts on items like acquisitions and special projects is that all the good news is generally baked into the price at the moment that they are announced.
The shares had reached a high of $27.37 in May of 2013 but started pulling back, hitting a low just above $21.00 in August. From there the stock began a move higher and began to build a base at $24.00. It was advised to monitor support along the 200-day moving average for signs of a breakout or a breakdown.
By the end of October 2013 there was evidence that GEI had more to give which was substantiated by the golden cross that surfaced in November. The stock continued to climb to a 52-week high of $37.77 by September of 2014 where it topped out and began a serious decline.
The three-year chart outlines the patterns that influenced the stock as it hit the August 2014 highs. The MACD and the RSI signalled a sell as the shares had become overbought. By December of 2014 a death cross surfaced as GEI broke below support near $29.50. By January 2015 the stock hit a 52-week low of $21.84 where buyers came in, driving the price higher.
The six-month chart illustrates the decline that started in September and the death cross that formed in December. The chart also features resistance along the downtrend line and the 50-day moving average that is currently being tested. At this point its too early to tell if we can expect a trend reversal.
Of the stocks analyzed it looks like a pick 'em between Husky and Suncor based on the technical patterns examined. Keep in mind that Husky is expected to report its earnings on Feb. 12, while GEI is scheduled to report in early March and Suncor in April.
Make it a profitable day and happy capitalism!
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