After the recent negative publicity for Agility, the stock has dived down making it the worst performing stock in the Kuwait Stock Exchange for both Q3 and in December. In Q3, the stock fell 50% versus the KSE index which shed 10% only. After the lawsuit filed against Agility in mid-November (Details), the stock tumbled 37.5%, then it took a breather in mid-December. The breather was short-lived as Agility was hit by yet another shock and shed 24.7% from its December highs as DynCorp International Inc. terminated one of the company’s units as a subcontractor of a logistics program.
Despite that it has been a while since I looked at Agility’s numbers, I do think that much of the bad news is already priced in. Looking at the chart below, the stock has broken its 15, 50, 100 and 200 day moving averages. However, it is approaching strong resistance levels around KD0.600. I recommend taking a position in Agility during the next few trading sessions and exiting that position once the stock rebounds.
No comments:
Post a Comment