Is Uniq unique?

Uniq (SP=13.25p) underwent an explosive breakout today, closing up 5.75p (+74.92%). Of the 115million total shares available, 9.96m changed hands (8.7%), making this a significant move.

Was any of this foreseeable? Well we thought so, hence UNIQ was one of our picks for 2011. Another one of our picks for the year went up 21.18% today on a very impressive set of annual results. Want to get details? Join our community of DIY-Investors Here.

Pendragon (20.5p) - Start of a new upward move?

Fully listed Pendragon (PDG), closed today at 20.5p, up 2.5p or 13.89%. With the preliminary full year results due on 28th February 2011, is this the start of a new upward move?

On a fundamental basis, PDG is currently on an exceptionally low PSR of 0.04 (compared to the sector average of 0.87). Similarly, its PER is currently only 5.31 (sector average is 13.7). Analysts are expecting the eps for y/e 31.12.2010 to have grown 203% to 2.53p, with another 34% growth in earnings expected for 2011 (to 3.39p).

What of the technicals? Well have a look at the grapth for the past 9 months (below):

From this, you can see that the closing price (20.5p) has nudged through the resistance line, extended from the two previous highs (Aug 2009 & April 2010). Similarly, it has broken through the shorter term resistance line (September 2010 to present).

Of particular note is the strengthening OBV, giving a positive divergence with the falling shareprice. Also, we have buy signal on the Stochastic Indicator. Similarly, the RSI and OBV have kicked up nicely today.

All of this bodes well for the future, as it mirrors the breakout that took place early in January 2009 (see graph below).

What you think about the prospects for Pendragon?

DCD Media (SP=9.625p) - Buying Opportunity?

DCD Media (AIM: DCD) ticked up 0.75p (6.9%) today. The share price graph (below) shows a clear reversal signal ...

Note also that the on-balance-volume (OBV) is very strong. Couple this with oversold indictions from RSI and MACD and we seem to have a good opportunity to buy into a small company with improving prospects.

The longer term graph (below) shows the price history.

The decline from 2007 to 2010 indicates a classic depressed stock. However, after a period of "bottoming out", there now seems to be some indications of a resurrection in the share price. Our interest started when Taya Communications increased their holding to 12.145 million shares (19.87%) - clearly they had spotted some value here! DCD Media has nine operating companies producing and selling television programmes and licensing various rights to third parties. The accounts for the year ended 30th June 2010 showed an improving balance sheet, with £4.9m in cash - not bad for a company with a current capitalisation of £5.9million!

With a low PSR (0.17) and improving prospects, we believe that this is well worth adding to our DIY-Investors portfolio.


What do you think?