Dunlop Articles on Proshare - 7 months ago...the analyst made a call....

http://www.proshareng.com/myproshare/portal_articles.php?id=1443

http://www.proshareng.com/myproshare/portal_articles.php?id=1397

http://www.proshareng.com/myproshare/portal_articles.php?id=1359 (reproduced below)

Upon the conclusion of Dunlop\'s secondary offering on February 2, 2007, the company’s stock price experienced a sharp ascend gaining N4.78k, or 115% through February 26, 2007. However, after the meteoric rise, the stock began a slow but severe decline loosing N6.44k, or 72% during the next 9 months.

Subsequently, the stock began a slow recovery breaking through its 20 day cumulative simple moving average (CSMA) of N2.76k on November 6, 2007, and through its 50 day CSMA of N3.02k on November 11, 2007. This trading pattern was an indication of strong relative strength.

However, on November 15, 2007, after 20 days of positive up trend, the stock closed under its 20 day CSMA indicating a sign of short-term weakness.  As at the close of trading on December 12, 2007, the stock was below its 10 day and 20 day CSMA of N3.29k and N3.38k respectively.  The only encouraging indication is that the stock is above its flat 50 day CSMA of N3.07k.  There appears to be turbulence ahead, because the 20 day CSMA is beginning to trend down. Technically, if the stock slips under the 50 day CSMA, it might be time for short-term holders of the stock to consider selling.

 

Additionally, a review of the most recent four (4) FYE financials reveals that the company reported pre-tax losses of N276M, N407M, N208M, and N653M respectively. 

 

Conclusion

Fundamentally, we would not recommend adding to existing positions, or taking new positions of the stock at this time. Technically, the stock is barely holding up.

 

- Chuks Biosah