Happy new year! As we open 2018, let’s take a look at one of the best performing stocks for 2017 and how it performed! The goal of this is for you get to proper buy signals from it and how you can replicate that strategy for 2018! I’m here to tell you that, you do not need to follow hype and speculation to make money in stocks. You just need to properly follow the technicals on how you can come in properly and win in the market! Because everything you need to know can be found in the charts! In my own personal trades, I just follow the charts and I do not listen to what I hear around me. That’s where I believe money can be made in the market when you follow your own conviction using sound technical strategy!
If you bought MAC in 2017, congratulations! You have a heap load of earnings that you can use for 2018 that you can invest further! MAC out performed SMPH, SM, AC, EW, MRP, BLOOM and other amazing stocks that have also performed well last 2017!
Catch me in my live training events! (quick plug)
The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.
Stock Smarts Cagayan De Oro — January 13 – 14, 2018
Investor Insights 2018 — January 20, 2018
Stock Smarts London, United Kingdom — January 26 – 28, 2018
Stock Smarts Dubai, UAE — February 9 – 12, 2018
Stock Smarts Manila — March 3,4,17,18 & 24, 2018
TALE OF THE TAPE – MAC
MacroAsia Corporation is a holding company. The Company’s segments are In-flight and other catering, which services meal requirements of foreign and domestic passenger airlines at (NAIA), among others; Ground handling and aviation segment, which offers ramp and passenger handling, and aviation services to foreign airlines and domestic carriers at NAIA and Kalibo International Airport, among others; Rental and administrative segment that includes sub-lease of the MacroAsia Ecozone; Charter flights segment that offers international and domestic chartered flights from its base at the General Aviation Area, MDA to any point within the Philippines; Mining segment, including mining-related activities of the Company; Water-related projects, including development and construction of water-treatment facilities activities, and Maintenance, repairs and overhaul (MRO), which includes MRO services of Airbus and Boeing aircraft.
Stock Price as of December 29, 2017: 22.85
ROE: Very high at 24.37
Fundamentals: After a bad 2012 and 2013, the company is seeing increased earnings growth from 2014 – 2017.
Possible Reversal to sell: For position traders as of this point the trend is still up. There is no sell is signal yet.
WHEN WAS THE BEST TIME TO BUY?
Since the chart tells us everything we need to know about the stock, the best time to buy was on the breakout from the 2.65 price level last February 2017! If you bought at this level, you would have rode the stock well into its uptrend!
IF YOU MISSED OUT ON THE FIRST BUYING OPPORTUNITY CAN YOU STILL BUY THE STOCK?
Of course! As long as the trend is still up and a new breakout is present buy all means buy! You just have to remember though that if the stock fails to hold that breakout point you must sell and you must cut your losses. For MAC the second best time to buy was at the breakout from 5! If you bought from the breakout at 5, you would be up around 440%!
IS THERE A THIRD BUYING OPPORTUNITY?
Yes there is! Again, you don’t buy just because you want to chase stock prices, but you buy because the technicals dictate that there is a buy signal! That’s where you also need to temper you emotions, that if there is no buy signal you do not need to make the trade. Just a heads up though, everytime you buy the stock higher, the chances for it to retrace and reverse down is higher as well. So you put on a larger amount of risk each time you buy higher.
For this third opportunity, it was from the breakout at 12.10. If you bought because of that break out, you would have been up around 103%. Not bad at all. So this means, even if you came in late in the game, as long as you follow proper technical analysis your gains should still be good and you would still protect yourself from losses.
You have to know that technical analysis works and is one of the greatest tools on how you can make money in the market! It is true though that technicals will never tell you were the bottom and the peak is. It’s not designed for that, what technical analysis will teach you though is how you can enter the market properly without fear and with full confidence that you know what you are doing.
I hope this helps you and may your 2018 be your best trading year yet! Here’s to more and more Filipinos earning from the stock market! God bless you!