2 stocks that we think could surprise on the upside this reporting season – WEB & JBH


 In this section we look at two stocks that we think have investors should add to their portfolio. The upside risks are far greater than the downside and the story reads well. We will look at both company’s fundamentals, technicals and thematics to explain why we have selected the two stocks. This week with reporting season getting underway, we’ve decided to select 2 stocks that we think will surprise on the upside and post bumper results.

Webjet (WEB) – The online travel agent looks has had a bumper year, its share price is up a whopping 117% in the last 12 months. Despite this we think its good fortunes are set to continue as it steals market share from its ‘bricks and mortar’ rival Flight Centre. The company recently reaffirmed FY17  EBITDA guidance of $60m driven by solid bookings growth with longer term targets are still in place in B2C and B2B. Morgans believes the stock will surprise on the upside. It says the new business unit is scaling well and the company continues to gain market share. Acquisitions are also doing really well. In Novembe the company sold its struggling Asian business Zuji for a US$26m profit. This sale will have helped management to focus on their core business. WEB bookings growth continues to outperform the market by more than 4 times and has recorded strong growth in both domestic  and international bookings. Online Republic –currently tracking ahead of expectations. The company is due to report around the 18 February.

Here are the numbers to watch out for:

  • B2B on track to exceed $11 million EBITDA for FY17.
  • B2B TTV on track to exceed $700 million by FY18.
  • $26 million gain on sale of Zuji.
  • 1H17 EBITDA expected to be up more than 60% on pcp.
  • 1H17 NPAT expected to be up more than 75% on pcp

We think Webjet could surprise on the upside with another strong result. The only drawback is its high PE of 42.20x and we’ve seen a few high PE stocks getting crucified this season. Despite its high PE, the company is profitable as you can see with its ROE. The WEB chart is particularly attractive. The stock looks to have bounced off its uptrend support line. Investors should be buying WEB in the lead up to results as the stock is making higher highs and moving with bullish momentum.

JB Hi-Fi (JBH) – We’ve been fans of the electronics retailer for some while and have written about the stock a few times. The company is due to report on the 13th February and we think it will surprise on the upside. Morgans says  JBH experienced a solid trading session through the Christmas period and has recorded its first month with The Good Guys (TGG). The broker thinks JBH will upgrade guidance which will combine guidance from TGG. Deutsche Bank and Morgans both think JBH and HVN will surprise on the upside due to a bumper Christamas and the wealth effect from a booming property market. Industry analysts suggest gaming consoles, VR Headsets and the iPhone 7 were all in demand. Even whitegoods such as airconditioners and refrigerators were in demand.

Here are the numbers to watch out for:

  • Deutsche is tipping JBH to post sales growth of 7.7% up from a flat sales guidance.
  • Gross margin to rise 5bps
  • Guidance – JBH may increase its FY sales outlook to $4.3bn from $4.25bn.

On the chart the stock is sitting on its uptrend support line. It will be interesting to see whether JBH either bounces or breaks from here. With no news until the 13 Feb, it will be make or break at its results regardless of the trend. Either way though, the stock is in a solid uptrend and has been for quite some time. It’s all bullish indicators.




BuyMyplace.com.au (BMP) – You may recall an article we wrote last year about an online real estate company called UK Purplebricks. Well Buymyplace has launched its own Purplebricks type of service but plans to undercut them as well. BMP promises to slash the cost of using a normal real estate agent by more than $15k and charge only $4595.

The company listed in December 2015 via a back door listing of Killara Resoures. It raised $5m at 20c per share. The company is attempting to disrupt the traditional real estate space in much the same way that Purplebricks have done. BMP are a similar sort of online space providing a range of real estate services to customers who wish to sell their homes but not pay a commission on the transaction. Customers can choose from a range of service bundles with the basic package including a listing of the house on each of Australia’s largest real estate portals. It also includes a For Sale board, access to online resources and consultancy time. Additional services include photography, sworn property valuations, open for inspections and negotiation and auction services. But all these services have one thing in common: they don’t charge a commission as a % on the value of the home once it has been sold. The company generates revenue by charging these fixed fees according to the package that the customer chooses. It’s a disruptive business that is fast becoming the “new order and way of doing things”. The company is starting to do well in lower listings. In the UK – the nation’s largest real estate firm is closing branches due to this disruption. It’s only a matter of time before Australia catches on. It’s competitor Purplebricks launched in Melbourne and QLD and charges $4500 flat fee.

3 stocks from the herd – OFX, DOW, WOW


In this section we provide readers with three stocks that have attracted the interest of the broking community or the ‘herd’. Broker recommendations tend to be biased and highly optimistic. We try and breakdown these barriers and give our own honest opinion. It is important to keep in mind that technical analysis is only one part of the investment process and any recommendations do not give consideration to the underlying fundamentals of each business. 

OZ Forex (OFX) – Current Price $1.325 – Had a shocker this week with its shares being smashed by 24%. The company issued a profit downgrade largely stemming from the UK after the Brexit vote resulted in less large value discretionary transactions and a 35% decline in revenues per transaction. OFX also announced that it had appointed John Alexander Malcolm as CEO. Broker View: Macquarie (OVERWEIGHT $1.65) – The broker has an Overweight recommendation on the stock and says three downgrades in 18 months highlight execution issues. This suggests the reason the board has decided to change CEOs. OFX now expects FY17 pre-tax earnings to be around $27.5-$28.5m and NPAT around $19m. That means a downgrade of around 10% on previous estimates. All in all, the broker is still supportive of the stock and says ‘it’s still good’. There’s a lot of work to be done but it can be done.

Unconventional View: We disagree with Macquarie. We wrote about OFX on September 23 and we said “OFX doesn’t look good…You can also see a death cross – this is when the 40 day moving average crosses below the 150 day moving average, triggering a Sell indicator. Traders and investors both should wait for the stock to bottom and reverse in trend before considering a position in OFX.” Surprisingly Macquarie still has an Overweight on the stock despite three profit downgrades. Maybe after the fourth profit they might drop their recommendation? Note – Macquarie were behind the OFX IPO. Either way three downgrades in 18 months more than suggests there are a few problems in the works. A new CEO has been appointed so expect some deck clearing and write-downs. Mr Malcolm has an enviable background and strong leadership skills coupled with substantial experience but even then it’s a long windy road before this ship turns around. The company’s market strategy has been shot to pieces and there has been a material reduction in average transaction values from individuals in UK. The pound devaluation caused by Brexit resulted in a 35% decline in revenues per transaction. For that reason, we simply can’t get excited about Oz Forex. We suggest those wanting to buy, at least wait until the company reports on the so that you have some idea of how bad things are. Buying now is like catching a falling knife. Gone are +$3 a share days driven by the Western Union takeover bid. For those that own the stock already and have held on, it’s too late to sell now. You’ve only got one option but to hold and hope the new CEO turns its around. Hopefully he will help the company deliver on its ambitions.

 Downer EDI (DOW) – Current Price $7.07 – Shares have lifted following a positive earnings report. Shares soared by 13% after the company delivered an 8.5% rise in HY profit to $78.2m and increased its profit guidance by 7% to $175m from $163m for the FY. The increase was supported by two rail contracts – Melbourne high capacity Metro trains project and Sydney’s suburban train contract. Broker View: Macquarie (OUTPERFORM $7.45) – The broker is bullish on the Downer result. 1H of $78m beat their forecasts and the FY17 profit guidance increase of 7% to $175m was icing on the cake. The main revelation was in technology & communication services, driven by the ramp up in the NBN, and work for Telstra (TLS). Overall a strong result.

Unconventional View: We agree with Macquarie on this one. It’s been a long and windy path for Downer. If you remember about five years back, Downer ran into some serious problems. Profits were tumbling, no dividends and its troubled Waratah train project was throwing up costly delays and write downs. Downer was in a world of worries and it was a stock you wouldn’t have touched. It was 2011 and Downer reported a 1H loss of $103m due to massive $250m write down. Shareholders jumped ship and the stock was all but forgotten. Shares fell from a 2010 high of $9 to a rock bottom low of $2.75-$2.95 in February 2016. That’s a near 70% fall. Painful indeed. But since then the stock has staged a remarkable turnaround. A turnaround that has gone largely unnoticed. You’d be surprised to hear that since February 2016 the stock is up a whopping 133% at around $6.88. The company turned around its fortunes and started winning contracts again. A $1.7bn contract to supply 24 new double decker passenger trains to the NSW government was won back in December 2016, sending shares soaring to a 6 year high. It also was awarded a $190m solar farm contract in North QLD and a $2bn contract to build 65 brand spanking new trains for Victoria. This week Downer posted a ripping result with NPAT of $78.2m above an expected $69.5m. It will also pay an interim dividend of 12c and went one step further and raised its FY guidance to $175m from $163m. You have say the company’s outlook is looking a lot better highlighted by its guidance upgrade. On the chart, DOW is looking very attractive. The stock has broken out on the upside and pushing higher with bullish momentum. Investors should be buying on this trend. Downer has risen some 14% but it’s not overbought with the RSI at around 65. You might want to wait till the stock subsides a little. But overall, it’s a Buy.

Woolworths (WOW) – Current Price $25.48 – It’s been a rough few years for Woolies, but after a new CEO and a lot of deck clearing things seem to be looking a lot rosier. Anaysts are becoming less negative on the grocery retailer and some are forecasting a positive result this reporting season. Industry margins have bottomed. The last 3 years have been difficult for WOW, as they reshuffled the board, made difficult decisions in for the BIG W and grocery businesses and began the long process of regaining competitiveness. The decision to ‘invest in price’ or effectively reduce margins to increase volume, appears to be paying off and have finally outperformed Coles in same store sales growth after 27 consecutive quarters of underperformance. Broker View: UBS (BUY $27.30) – The broker has a bullish view on Woolies. It is less negative on the stock and the Australian grocery market as a whole. It believes ‘industry margins start to bottom while a more rational pricing backdrop is developing.’ As a result the broker has upgraded to Buy from Sell on an improved outlook.

Unconventional View: We agree with UBS. Woolies is looking a lot better and looks to have successfully turned its fortunes around. The 2016 sell-off was well overdone. We wrote about Woolies back in July and have had a positive view on the stock ever since. Back then we said “With Banducci at the helm, new directive and vision could give Woolies a ‘fresh’ start. Pardon the pun. If you are looking to Buy – Not just yet. Wait for the turn around and upside break in trend. There will time to buy when a recovery is in play and mood has changed. At the moment Woolworths is stuck in a sentiment hole but any positive news could see the stock re-rate.” We think NOW is the time to Buy. The sentiment is about the change and the turn around has occurred. Woolworths still has the largest and finest distribution network in the country. Management have identified the problems that plagued the retailer last year and have successfully improved the business. The choice to sell off Master’s chain was a positive and stemmed the bleeding. The recent move to sell off 527 fuel sites and 16 development sites to global giant BP will reap a cool  $1.785bn and will be another catalyst. It’s all positive news. On the chart, Woolies couldn’t look any better. The stock is in a clear recovery and has formed a new short termuptrend. We advise investors to jump on board prior to the Woolworths profit result.




Innate Immunotherapies (IIL) – Shares have been on a tear rising close to 1000% in a year. The company is a medical biotechnology company with offices in Sydney and Auckland. It designs and manufactures a unique immunomodulator microparticle technology. This technology can be used to induce the human immune system to fight certain cancers and infections, or modulate certain immune mechanisms implicated in autoimmune diseases such as Multiple Sclerosis. The same technology can be used in the design of better vaccines to potentially treat or prevent diseases such as influenza, cancer, malaria, or tuberculosis. Last June the company raised $5.4m to complete a Phase 2B clinical trial to test the safety and efficacy of MIS416 for patients with secondary Progressive Multiple Sclerosis. The results were better than expected with 70% of patients reporting significant improvements in their health following the drug. It’s a big tick of approval which is on the road to success with a few big pharma companies watching the trial and the outcome very closely. Whilst the company is a small cap unknown bitotech with no approved drugs, it’s got some very powerful US backers. Republican of New York Chris Collins is IIL biggest shareholder and sits on the board. Tom Price who is the representative of Georgia is also a shareholder. And the list goes on. Strangely enough Price has been buying shares in IIL at the same time when negotiations were underway for the 21st Century Cures Act. This is a bill designed to fast track drug approvals. He introduced the legislation days after the purchase. So it’s interesting as to why these heavy backers including the man who is likely to become the next health secretary, are all investing in a company with only one experimental multiple sclerosis drug. Whilst it could just be coincidence or something suspicious, the stock is worth looking at as a trade, especially if IIL is successful and sold off to a big pharma. On the chart, IIL has gone on a stellar run and is most definitely overbought on the RSI and MACD. But it’s rising with bullish momentum and making higher highs. We would advise this stock suitable for traders only wishing to buy on the momentum and exit as soon as that momentum turns. 

X Factor Stocks – 2 stocks that might be affected by the failed Trans Pacific Partnership deal – TWE & AAC


In this section we look at two stocks that we think have investors should add to their portfolio. The upside risks are far greater than the downsideand the story reads well. We will look at both company’s fundamentals, technicals and thematics to explain why we have selected the two stocks.

News is out that Trump has all but canned the TPP deal. He has said all along that he would kill the deal once in office, so it wasn’t a surprise. The Trans-Pacific Partnership was a free trade deal with the US, Singapore, Brunei, New Zealand, Chile, Peru, Vietnam, Malaysia, Mexico, Canada and Japan. Its failure is a major blow to the Australian government but won’t have any negative effects to the economy. It’s business as usual. The opportunity cost was reduced tariffs and cost savings on agricultural and food products which Australian exporters send to the US. Here are two stocks that stood to benefit the most from any TPP deal. For agriculture, the TPP would have eliminated tariffs on more than $4.3bn of Australia’s dutiable exports of agricultural goods. Here are the main products that would have seen significant tariff reductions: Beef, Sugar, Rice, Dairy, Cereals, Wine, Seafood. Iron ore, copper and nickel to Peru. Iron and Steel products to Canada and Vietnam. Paper to Peru. Automotive parts to Vietnam. In summary – the biggest loser from a failed TPP would have been the sugar industry. Most of the economic gains from free trade have been accounted for with existing FTA’s. Therefore the TPP is unlikely to see any massive growth in GDP. Keep in mind, we didn’t require a Chinese FTA to bring on the mining boom.

Treasury Wine Estates (TWE) – When the TPP was first announced Australian winemakers celebrated and cheered on the new deal after years of intense negotiations. The deal represented a strategic growth opportunity for wine producers to export to these member nations via reduced tariffs. It was a way for wine producers to become more competitive overseas and gain access to markets that have largely been untouched. TWE welcomed the deal and was looking forward to reduced tariffs in Mexico, Vietnam, Malaysia, Canada and Peru. It would have been a huge opportunity for TWE to expand its products into these markets. It basically allowed Australian wine producers to compete on a level playing field in these member nations. Do we think it will affect TWE negatively? Probably not. The Winemakers Federation of Australia says the US were the least important party to the TPP. Whilst it would have presented great upside potential, nothing will be lost as a result of the failed deal. It’s business as usual. TWE conducts 80% of its business overseas (30% from Asia, 14% Europe, 40% America). Therefore its share price is driven by overseas demand for Aussie wines such as Wolf Blass, Penfolds and Blossom Hill. We think there is far greater blue sky potential with China than with the US. TWE has only just scratched the surface. There is a shift from beer to wine and Australian wine is rising in popularity among the Chinese consumers. There is also a lack of availability of Australian wine which creates a double whammy effect. On the chart, TWE has gone on a bumper run since mid-2015. It has pulled back a touch and is trading on its uptrend support line. We think this is an opportune time for investors to pick TWE. Yes it’s sitting on a high PE (44.65x) but that’s ok as its ROE is steadily rising.

 Australian Agricultural Co (AAC) – The TPP was to see significant reductions and elimination of tariffs on beef and beef products into Japan, elimination of tariffs on beef and beef products into Mexico and Canada over 10 years and elimination of the AUSFTA beef safeguard into the US. Exports to the US were $2.5bn in 2015-2016. The agreement would have provided a boost to companies that export red meat and livestock. It was estimated that the agreement would have added an extra $3.67bn to exports in this sector which farmers receiving the biggest gain. TPP members already account for 52% of Australia’s beef, sheep meat and offal trade. What would have been the removal of tariffs would have had a positive impact on the profitability of Australian cattle and sheep producers, processors and exporters. Despite the TPP being a positive for beef exports, it’s just means business is as usual. Our largest beef export partners are – Indonesia, China, Vietnam, Malaysia and Philippines. The National Farmers Federation said the biggest gains would come as a result of freer trade with Japan, Mexico, Argentina and Canada. 50% of beef and 33% lamb was already exported to TPP countries. So it doesn’t mean this will be halted. It just means the opportunity is significantly reduced. AAC has changed the way it does business. It have moved away from being just a pastoral business towards becoming an integrated meat producer. It posted a HY profit of $47.9m which was down slightly on the pcp. Branded beef sales continue to rise which means its transition towards the global luxury beef segment is starting to pay off. On the chart, the stock isn’t overly attractive. AAC looks to be stuck in a pennant flag. You’d really need to see a clear upside break out before buying. We recommend investors sit this one out.

3 stocks from the herd – BXB, BSL, RMD


In this section we provide readers with three stocks that have attracted the interest of the broking community or the ‘herd’. Broker recommendations tend to be biased and highly optimistic. We try and breakdown these barriers and give our own honest opinion. It is important to keep in mind that technical analysis is only one part of the investment process and any recommendations do not give consideration to the underlying fundamentals of each business.

Brambles (TWE) – Current Price $10.62 – Has downgraded its profit forecast which wiped $3.1bn off the market capitalisation of the company this week. Shares fell 16%. The company now expects revenue growth of 5% in the six months ended December 31 and underlying profit growth of approximately 3%. FY results will fall below revenue guidance range of 7%-9% and underlying profit range of 9%-11%.

Broker View: Morgan Stanley (OVERWEIGHT $12.30) – The broker believes the 16% share price sell-off is a massive overreaction given strength of BXB’s growth outlook. It’s all short term stuff in the broker’s eyes rather than something more cynical. A PE of 17x is below its five-year average of 18.5x. This makes the stock a strong buying opportunity with the company expected to post a solid 2H.  

Unconventional View: We disagree with the broker report titled ‘Overreaction brings opportunity’. The recent share price fall is justified and we think there is more to come. Brambles has slashed its profit forecasts because of a sharp drop-off in demand in its US pallets business in December. This has dented investor confidence and put the company on a back foot. What once was a defensive safe stock is now on the nose. The moment a high PE stock is unable to deliver, the market tends to lose interest very quickly and offload the stock. ROE isn’t looking too flash either. Forecasts are for its ROE to fall in the years ahead, with profitability falling. We suggest investors do the same. BXB is facing higher costs as US retailers either delay buying new stock or lower the amount of stock ordered which means pallets are being returned. It could be that the election of Trump has caused a shift in consumer behaviour. On the chart, BXB has broken its long running uptrend support. This is a bearish sell signal. Until a bottom is formed, we don’t recommend investors buy just yet. But there will be an opportune time when you’ll be able to pick this stock up at a rock bottom price. But not yet. The share price could have further to fall.

Bluescope Steel (BSL) – Current Price $11.06 – Shares have been on a tear up 8% this week and up nearly 40% over the last 3 months. The recent rise comes on the back of a profit upgrade driven by strong steel prices, tax breaks and pay freezes. This has led the company to forecast a profit of $600m for the December half above the November forecast of $510m.

Broker View: Cit (BUY $13.34) – The broker is positive on Bluescope’s outlook following this profit upgrade. The good news keeps rolling says the broker with analysts pointing out that BSL remains a quality stock with low financial leverage. All in all, the company is on track to bust past the $1bn EBIT mark this financial year.

Unconventional View: We agree with Citi. The profit upgrade is a positive announcement and readies the market for asolid result when it reports soon. The profit upgrade comes on the back of a massive surge in steel prices. Despite a massive run in the share price, we think there is still more to go. Momentum is bullish and the valuation is compelling. Macquarie even says the stock is at a discount to global peer basis. BSL is however a traders stock. It has run hard and on the RSI it’s looking a touch toppy. But that’s ok. It’s trading with bullish momentum and making higher highs. If you’re tempted to buy it, set a tight rolling stop loss in the event that it pulls back.

ResMed (RMD) – Current Price $9.13 – This week posted a 17% rise in 2Q revenue to US$530.4m. Whilst the result came in better than expected it was the company’s approach to the Trump administration that grabbed market attention. RMD says it’s ready to adapt to new US policies.  

Broker View: Credit Suisse (BUY $9.45) – The broker has released a positive note on the company post its results. Earnings were above consensus forecasts and show a recovery in organic earnings growth. Potential catalysts include launch of the AirFit P20 mask and resolution of AirFit F20/N20 mask supply constraints.

Unconventional View: We agree with Credit Suisse. This week’s profit result was a big beat on consensus forecasts which only further highlights a great set of numbers. But the main takeaway was the company’s upbeat assessment of the Trump administration and willingness to adapt to any policies. As new policies begin to be introduced, the company is prepared and wanting to be ahead of the curve. This means the good times are set to continue. RMD has received high demand for its two masks AirFit F20 and AirFit N20. The successful launch of these two products will help it stay a step ahead of its competitor Fisher & Paykel (FPH). On the chart, RMD has broken out on the upside of its uptrend channel. This is bullish buy indicator however shares are up some 10% this week. We suggest waiting for a dip before buying. Overall though the RMD chart is attractive with the stock continuing to push higher.


2 stocks that are in the fast lane – KGN & IGL


In this section we look at two stocks that we think have investors should add to their portfolio. The upside risks are far greater than the downside and the story reads well. We will look at both company’s fundamentals, technicals and thematics to explain why we have selected the two stocks.

Kogan (KGN) – Ruslan comes through with the goods. We’ve been a supporter of Ruslan’s Kogan for some time and wrote about the stock back in June when it first listed. The stock has been a bit of a disappointment since listing at $1.80 for those that bought in, shares plunged more than 16% on its debut. It fell to a low of $1.32 in December 2016. But for those looking to buy now, the stock is roaring back. Many said the share price fall didn’t make sense given its strong institutional demand and strong sales. Ruslan even said he wasn’t concerned about the fall and knew he had a very strong business. He was confident in the company’s forecasts and its future. Well this week he proved the naysayers wrong and signalled another profit upgrade driven by strong 2Q sales from the Christmas trading period. If lifted its prospectus forecast for pro-forma FY2017 profit at its AGM in November and this week went one step further by advising the market that it has beaten even those expectations. Looks like he’s doing something right by recording better than expected sales of TVs, drones, gadgets and power tools. Whilst he hasn’t formally upgraded guidance, it’s on the cards. KGN says earnings could be between $8m-$9m up from $6.9m. Pretty bullish stuff. An upgrade won’t be formalised until its auditors review of the HY comes in.

Picture from Sydney Morning Herald KGN shares are now trading at $1.65 up a whopping 25% at a time when all its competitors are struggling. Its decision to pick up Dick Smith’s online retail business was the right decision. It’s helped prop up the bottom line and beat prospectus forecasts.

All in all, we like the Kogan business. It’s a positive announcement for a company that started in Ruslan’s garage selling just TVs. The CEO has time and time again taken on the likes of the big boys such as JB Hi-Fi and won. We think Kogan’s success will only continue. At the moment shares are trading at a discount to the pre-IPO price and areattractive. KGN has $26.5m in the kitty and it’s hitting its prospectus profit forecasts with ease. The chart says Buy. The stock has recently broken out on the upside and has reversal in trend. Traders should looking to buy on this bullish break out.

IVE Group (IGL) – For those that don’t know, IGL is a diversified print company which includes Australia’s largest sheetfed printer Blue Star. IVE has evolved from a family-owned print production business in 1921 to a leading marketing and print communications provider in Australia. The company listed late 2015 and was one of the most anticipated floats of the year. The IPO raised $75.6m for 42.5%. The remainder is held by Wolseley private equity and the Selig family. The Company’s principal activities include the conceptual and creative design across print, mobile and interactive media, printing of magazines, catalogues, marketing and corporate communications materials and stationery. IGL basically helps its customers to communicate more effectively with their customers by creating, managing, producing and distributing content across multiple channels. Its proprietary brands are Kalido, Blue Star Group, Pareto Group and IVEO. Kalido – creative & digital agency. Blue Star Group – diversified manufacturing and production services group. Pareto Group – strategy development and execution of direct fundraising programs for the not for profit sector and IVEO – integrated marketing services supply chain solutions.

 The company has revenues in excess of $370m. It recently purchased two businesses Franklin Web for $100m and AIW Printing for $16m. Both acquisitions represent an expansion into the large format web offset sector making IGL a leading player. This sector is an attractive and complementary space for the company. IGL raised $40m at $2 per share to fund the acquisitions. IGL recently announced a contract win with Coles to conduct its catalogue printing services via Franklin Webb. It’s another big win for the company that has begun to start kicking goals. On the chart the stock looks particularly attractive. IGL has broken out on the upside and looks to be making higher highs, effectively reversed trend. Traders would be looking to buy on this break out, but might want to wait for a dip.