Titan Europe (TSW) - Breaking out?

Titan Europe (TSW) closed today at 83p. This marks a quiet breakout, on low volume, above the resistance level (82.5p) that has been containing the price for about three months.

TSW - 6 month chart

Now you might think that nudging through by a mere 0.5p is insignificant but in our experience, these small moves often mark the start of a new uptrend. The OBV remains strong and the MACD indicator gave a buy signal a few days ago. Judging by the longer term chart, there doesn't seem much to stop the SP climbing to about 122p (see below). Do you agree?

Titan Europe - Longer term chart (approx 27 months)

Apart from Blackrock increasing their holding to above 5% (17th November) and the good trading update on 5th November (for the 3rd quarter to 30th September), we can't find any other obvious reason for the breakout. If you have any ideas, please share them with us here.

STV Group - Is this the perfect rounded bottom?

• Scottish TV Group (Epic: STVG) has been on the DIY-Investors.com radar screen for some while. The share price graph (below) indicates that it is in the process of forming an almost perfect textbook "rounded bottom" - generally considered one of the strongest of bullish bottoming patterns.

The OBV is also strong and the RSI is also looking good. The price seems to be hugging the 200 day SMA but this in turn is now curving upwards.

The fundamentals also look encouraging. Based on the concensus forecasts for Y/E 31.12.2010, valuations are as follows:

• PER (pr) = 2.92
• PSR = 0.41
• PEG (pr) = 0.14

Being a FTSE Fledgling member, you can also tuck this one away in your self-select Maxi-ISA. Take a look and let us know what you think!

Johnson Service Group (JSG) - Breakout from trading range

You can see that Johnson Service Group (JSG) has clearly broken out of the trading range that has been constraining it for some weeks, see Graph below.

The next likely resistance level is 36.5p, the closing price on 7th May 2008, when JSG hit a "minor high", before reversing to begin its final downtrend leg. Since hitting its low (5.25p on 17th February 2009), it has been gradually creeping upwards in a typical step/stutter fashion.

With earnings (eps) forecast to nearly double in the current year, ending 31st December 2010, and a PEG of 0.16, prospects look to be improving for this turnaround candidate.

We believe that this share, in a typical "boring" Company - unloved by the City, is likely to undergo a significant re-rating over the next twelve months. What do you think?

Impellam Group (165p) - Recovery under way!

Impellam group, the AIM listed provider of staffing solutions, outsourced services and management is rocketing away. Since the release of its interims on Friday 6th August 2010, it has increased from 96.5p to close at 165p on Friday 15th October (10 weeks) - a 70.98% gain.

 Is the rise set to continue? Well, consider the following points:

1. With a Turnover in excess of £1Bn, IPEL has a PSR of 0.06 (extremely low).
2. It has reduced its nebt debt by £30.4m to £39.2m (as at 2nd July 2010).
3. It had adjusted eps of 21.8p for the half year, which if we double to 43.6p (to get an idea of likely full year earnings), gives us a PE of about 3.78 (about one-third of its peer group).
4. Technicals look strong (particularly OBV).

Overall, we feel that this is one that could well double again within 12 months. As usual, DYOR!

Lonrho (14.25p) - poised to break through resistance?

Lonrho gained 2p (+16.33%) in todays trading session, making it the largest riser in the DIY-Investors research list. Looking at the SP graph, the highest price since the peak (in the last two years) of 14.5p, reached on 13/04/2010 looks vulnerable. The technicals look good, with OBV increasing and strong RSI. If it breaks through the 14.5p level tomorrow and stays above it at the close, where do you think it's next resistance line is?

I favour a level of about 22p. Any other views?

Mecom Group - About to break through resistance?

Mecom Group (MEC) seems to be about to break through a resistance level. The RNS on Friday (24th September) indicates another large investor with over 5%. MEC has a very low PSR and improving prospects, so will it push up through? 

Sunkar Resources (AIM: SKR) - Broken through the 200day moving average!

Sunkar Resources looks as though it has started to get going again. This image, courtesy of Sharescope, shows how after drifting down from its previous high last October, it has recovered some ground. Since the end of August, it has broken up through the 200 day moving average and looks poised to continue upwards.

Of particular note is the OBV indicator which has remained strong (flat) and didn't decline as the share price drifted back. This gives us DIY-Investors encouragement to hold, as there is no weakening of shareholder sentiment.

GTL Resources - breakout?

At the first glance, todays move in the share price (up 5p or 8.26%) to 65.5p, doesn't seem overly significant. However, have a look at the SP graph again. It seems to show a breakout above the upper (resistance line) of the 'against the trend' wedge. This is considered by technical analysts to be a bullish move.

Using fundamental analysis, particularly the low PSR, also confirms that it's worth holding on to these IMHO. Have a look at the GTL research note on the website.

Really Good Food Group

Real Good Food Group (AIM: RGD), continues to increase as investors await the interim results due out on Wednesday 22nd September. The technicals are starting to look a little on the "overbought" side. What will happen after the results? Rise, Fall or Flatline? What do you think?

Caledon Resources - who is the bidder?

Caledon Resources (CDN) the Australian coal miner announced a new preliminary bid approach today, causing an increase in its share price to 63.75p.

Possible suitors could include:

1. Polo Resources - they already own 27.6% of CDN and have cash from the recent sale of their stake in extract energy. This may be unlikely as they returned a large portion of the cash to shareholders (3p per share special dividend).

2. Western Coal - this would represent a move towards being a worldwide player in the coal market (adding to their core Canadian, American and UK assets).

3. Xstrata - good match with their existing portfolio?

4. One of the many large USA coal miners?

Who would make the best match in your opinion?

Haike Chemicals - Very Low PSR

With today's increase in share price (to 21p), Haike Chemical (HAIK) still has a PSR of only 0.02 - making it very good value. So what's the catch (if any)?

Well some people have noted that the borrowings are very high and that a large proportion are short-term. In the UK, this would be very bad news as these loans are "callable". However, in china, with the banks being more stable (and cash rich by omparison with the UK) there is less risk.

On a book value basis, the Company also looks good value. What do you think?