• On the Money on Ayala Land (ALI)

    On the Money on Ayala Land (ALI)

    While a lot of supposed market technicians were advocating a ‘sell’ on Ayala Land, Inc. (ALI) at Php33.00 since it rebounded from its January 2016 low, we actually thought otherwise as the stock had a higher probability, considering its earnings growth of 19%, to breach the Php33.00 marker and head to Php37.60. Following its move past its resistance at its prior floor at Php33.00 and its downtrend line at Php34.00, ALI had nowhere to go but up with an estimated goal of Php37.60. As you can see, just a little over a week since its break, the stock had indeed achieved its October 2015 peak. Moving forward, ALI may likely stage a pull back as the general index is facing a major resistance around the 7,300 zone. Broad based profit taking may once again weigh on ALI and send it back to Php33.00 to Php34.00.

    ALI write-up from the Trading Edge Equity Advisor:

    March 10, 2016

    Ayala Land, Inc. (ALI), while already a massive company, is still a company that can be considered a growth stock due to its ability to continually grow its earnings by 20% year. Until the year 2020, the company is still on track to grow by the same degree. In the near term, one can expect ALI to extend its recovery from its January 2016 low. Given its rise over its resistance at its prior low at Php33.00 and its jump past its midterm downtrend line at Php34.00, ALI may likely continue to rise and aim for at least Php37.60. Note that consensus has a 6-12 month fair value target of Php42.75 for the stock.

    ayala land, inc. ALI downtrend resistance break 03.10.16

    ALI write-up from the Trading Edge Equity Advisor:

    January 10, 2016

    Ayala Land, Inc. (ALI), unfortunately, may likely continue to head lower in the near term. As you can see from its chart, the stock has failed to recover off its supposed base at Php33.00. Notice that its inability to bounce off the said mark actually translates to a breakdown from a continuation head and shoulders (Kilroy) formation. This in effect may put more pressure on the stock that may eventually lead it down to Php29.00 to Php30.00.

    ayala land, inc. ALI continuation head and shoulders breakdown 01.10.16

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    *Consensus target price or average target price given by the major foreign and local brokers of various stocks on top of index names are available in our Equity Advisor!

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