Home Retail Breaks Through Resistance

Home Retail (HOME), SP = 162.5p (10th September 2013)

Home Retail has finally managed to break through the resistance line (at 160.7p), see below:

Annotated on the Sharescope graph are my notes, picking up:

• The breakout today
• Volume over the past three or four days
• Rising OBV
• Buy signals on the ADX indicators

Key Metrics

The key metrics (above) show that the cash levels have been improving over the past three years and that the PSR is still low (0.24).

Also noticeable is that the cash flow per share is much higher than the eps (noted in blue above), so putting it all together, it could be that there's scope for a possible re-rating over the next few months.

In my opinion it could be worth watching this one over the next few weeks. What do you think?

Mick (10th September 2013)