Toromont Industries Ltd. : Supported by 50-days moving average
Entry price | Target | Stop-loss | Potential |
---|
CA$23.05 |
CA$25 |
CA$22.1 |
+8.46% |
---|
Toromont is a Canadian equipment group based in Ontario. Since 2010, Toromont is the official heavy equipment dealer of Caterpillar. Employing 5.600 people in Canada, the company is the number one Caterpillar dealerships by revenue. Its products are divided in two major branches: CIMCO which operates on the refrigeration compression equipment and the heavy equipment division producing engines for road building mining aggregates and public infrastructures.
For fiscal 2011, revenue grew to 1.38 billion dollar against 1.2 billion dollar for fiscal 2010. Net earnings increased 34% to 102.6 million dollars due to better revenues and margins. Rentals and products support recorded revenues close to the annual levels during fourth quarter 2011. For 2012, perspectives are encouraging with a substantial order volume and confident financial estimations.
Technically, the share has risen by 60% until the CAD 25 resistance. At this level, the stock has fallen back to CAD 22.9 short-term support, a convergent point with the 50-days moving average.
Therefore, it would be a good opportunity for investors to take a buying position at the current price to target the CAD 25 resistance. A stop loss should be positioned below the CAD 22.1 short-term resistance.
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