RE:RE:RE:CALGARY
So I'm the resident expert on support levels!!!!!!!!!!
LOL!!!!!!!!!!!!!!
Being VERY old school I actually do NOT place much significance to all the various Technical Indicators out there.
It took me a bit of time but I was able to find the poster who actually set the technical support level for ABM around 1.20__here is the post.
November 02, 2012 03:04 pm
RETIREDCF here is the rationale I used to make the comment that the easy money had been made once ABM breached $1.25.
It is basic math__long time ABM investors who bought at say 25 cents a few years ago would have seen a 5 fold increase in their investment when ABM hit $1.25__to get the same bang for the buck then ABM now would have to get all the way up to $6.25__and that will be a much tougher achievement than the move up from 25 cents.
And why did I pick $1.25__well not only do the TA and charts suggest that this as a near term support level but also I prefer to value resource extraction companies with the price/cashflow ratio rather than the price/earnings ratio being thrown around a lot on this board__thus using the normal 5 to 6 multiple the current reported ABM cash flow indicates that ABM is fully valued at around $1.25.
Oh, and one more financial matter of relevance being missed by probably most keen ABM investors like yourself is that almost 40% of the latest reported earnings per share actually was a non-cash item - being the estimated value of the eventual revenues ABM hopes to get from subleasing their depleted gravel pits to work camp operators__and what this means is that a full 3 cents per share of the recently reported 7.4 cents per share should be knocked off to properly compared oranges to oranges.