Technical indicators are very strong.
http://www.stockta.com/cgi-bin/analysis.pl?symb=GMK&num1=1&cobrand=&mode=stock
Strategy is to buy on any pull back in weaker overall market. Current short-term low may hit tomorrow.
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Its seems to have the potential to form a cup and handle formation on the chart. If so it should breakout and get above $5 a share by mid-June.
ReplyDeleteToday's comments on Yahoo confirm my prediction.
ReplyDeleteAnother upgrade this orning but for ADM to hold. This should be constructive for GMK.
ReplyDeleteSharply higher today on the Bolsa. Looks like a breakout to me on the chart. My prediction of $5 by mid-June is either on target or too conservative.
ReplyDeleteVolume continues light on both the NYSE and the Bolsa. It is interesting to note that much of the volume is going at the ask according to my one-minute chart.
ReplyDeleteThis rise is in a down market for Mexico this morning. The IPC is down a bit less than 0.2% on my recent delayed read.
Any increased interest from general Mexico/emerging market interest or positive fundamental developments would surely drive it sharply higher to reach my mid-month target of $5 for the ADRs.
In anticipation of another spike and then pull-back prior to that move, I have a sell order in at $4.79 today. If that does go, I'll be back in to buy closer to $4.50 and then trade in more shares above the $5 level.
While I do this trading in my cash account, the bulk of my position is a hold with some additions as long as it doesn't reach over 3% of my total holdings. LT strategy is to hold for a dividend reinstatement within 5-years.
Today's technical reversal may be significant. But volume continues light on both the NYSE and Bolsa.
ReplyDeleteMost significant to yesterday's low (6-10-09) it held above the previous low on the chart. Higher lows and higher highs on the intermediate time frame gave it a very strong bullish rating on stockta.com. Candlestick analysis if we close today at or near the high will make a bullish engulfing candle after setting a short-term low the previous day. Some traders may see this as a buy signal.
The markets in general continue supportive along with increasing interest in ADRs/international investing.
I view the potential to hit $5 by next week now less probable then when initially forecast but it seems now just to be a matter of time. The trading has seen some short-term profit takers exiting. If all at this price level and with any stronger buying volume, the $5 level for next week is a possibility.
I haven't traded (all on the buy side thus far)the stock in several days now but would have some interest to sell only above $5.
Corn prices on the CBT are sharply lower today. This is a sharp reversal in upward trend established earlier this year.
ReplyDeleteIn my opinion, this will increase milling margins allowing greater than previous profits for GMK in the 3rd & 4th quarter this year.
Look for the Iowa Crop Weather Report out today.
ReplyDeletehttp://www.usda.gov/nass/PUBS/TODAYRPT/prog2509.pdf
It will be interesting to see how planting has caught up with the excessive soil moisture. For every muddy field there are 10 already planted getting excess moisture where soil moisture in Iowa is rated 1505% of normal on the USDA June Crop Report.
Should be 150% of normal - sorry for typo.
ReplyDeleteTechnically we have succumbed to the general market decline but today witnessed a sharp inter day reversal. This was true on both the NYSE and Bolsa. On the chart at this moment before posting, the candle stick doji is constructive of marking a bottom but volume is only moderate.
ReplyDeleteIf this low holds and technical improvement follows through over the next few days with some help from the general market, the stock would become more sensitive to constructive fundamental events.
I noticed comments in the news (just do a google news search on "corn price") on the sharp decline in corn prices. Previous analysis on the corn situation was for a shorter supply for this season. With improvement cited in this week's crop weather reports - these analyses should greatly improve. The most current report on ethanol cites a great improvement in margins for conversion of corn to ethanol. The same would hold true for corn meal marketing margins.
My sentiment has turned more conservative until I can see some follow through to see that this is in fact an intermediate bottom forming. I would then become a buyer to add to my position if it would break through $4.60.
GMK one notch away from very bullish on stockta.com. Open gap yesterday. Very bullish candle pattern. breakout at $4.60?
ReplyDeleteFundamentally - meat prices are being discounted at local supermarkets. As meat prices decline feeding margins get squeezed. Deceased feed demand would lower corn prices further. Looks like we have a bumper corn crop coming with decreased demand. This would expand milling margins for possibly record profits for Gruma going into 2010.
"The 2009 corn crop continued to develop at a slower-than-normal pace in many locations across the Corn Belt because of delayed spring planting. In Iowa, the largest corn-producing State, emergence was nearly complete, but the
ReplyDeleteaverage height of this year’s crop was shorter-than-normal. Overall, 70 percent of the crop was rated in good to excellent condition, unchanged from a week ago, but 11 points better than a year ago."
from USDA crop weather report yesterday but I just talked to a friend in MN who said they got hit with very hot weather on Monday - corn is now growing "4 in. per day."
I expect to see great improvement in next week's report and continued lower corn prices.
Record rainfall was recorded in Bismark ND. That should add at least 2 more Bu. /acre for the Spring Wheat crop.